There are bound to be situations that life will throw at you like an unexpected medical emergency, some accumulated utility bills, or children’s educational expenses, and when it becomes financially beyond you to meet these expenses, it may not be practically possible or economically feasible for your parents or a relative to bail you out. You may also find it embarrassing to ask for help, or the amount needed may be too small or not worth troubling them for. Car title loans are like a friend that lends a helping hand, with the least bit of questioning, when you or your family face a financial crisis.
Approaching a Bank or financial institution is futile because they make you wait endlessly after requiring you to complete loads of paperwork and part with lots of personal information. The loan appraisal formalities are tedious and often intrude into your comfort zone and violate your privacy as the Banker goes about verifying your sources of income. The problem gets compounded when the banker keeps you waiting for his approval, while your financial situation deteriorates, and ultimately you suffer the ignominy of having your loan request declined. The car title loans are available with the minimum of fuss and formalities, and you get to confirm your eligibility for the loan within minutes.
An amount like $2,500 may represent the difference between having to cope with bare minimum health care or seeking an advanced treatment that is desperately needed to preserve your health, it may be all that you require to bridge the financial gap in choosing a lucrative career for your child or having to settle for less rosier options, sometimes it could be the passport to a nice vacation that you richly deserve, but you postponed for financial reasons. The auto title loans deliver cash instantly, literally unlocking the equity that is locked up within your automobile, which would otherwise remain a dead investment. You can withdraw cash up to half the total resale value of your car. That’s a lot of money, especially when you are juggling the home finances, and there is no way out.
It can become very embarrassing when the banker probes your financial condition in order to determine your eligibility for the loan, to ascertain whether you have it in you to repay the loan, and even if the banker is satisfied on all counts he invariably exacts a heavy price by collaterally securing your home or extending his lien on your salary, or insists you provide a guarantor for the loan. The car title loans can be availed without verifying your income in an intrusive way, and with the bare minimum paperwork, and with the least inconvenience to your family, friends or your office administrator; these loans can be applied, papers exchanged and the cash released, all within hours.
The traditional banker makes you perform the complete merry-go-round finishing the formalities for assessing the viability of your loan, and then he takes his time sanctioning the loan, and insists on securing the loan with adequate collateral that can be very depressing for you. To make matters worse, the banker will amortize payments running into years, and that means you shell out heavy payments by way of interest. The low APR at the commencement of bank loans is misleading because the banker is actually compelling you to pay multiple times the loan amount over the years through installments. With auto title loans you get to pay higher interest rates but the loan is fully liquidated in the short term leaving you free of all liabilities and in full possession of your car. What you think is a steeper title loan interest outflow is nothing compared to a bank payout over a three-year or longer period.
Eligibility for title loans
You need to be:
- – A US citizen residing in a state that permits such loans
- – Over 18 years of age
- – In regular salaried employment, or be self-employed with some proof of steady income
- – Having full title to the automobile possessed by you
What you need to do to get these loans
You need to submit:
- – Your driving license
- – Proof of residence, like a phone bill
- – Proof of income, like a salary pay slip or bank account to prove your ability to repay the loan
What you stand to get
A Loan up to 50% of the resale value of your automobile, minimum loan is usually $2,500; the maximum amount is pegged on the car’s resale price.
How do you repay such loans?
Usually within thirty days for small loans, and slightly longer duration for higher amounts. You are obliged to repay the principal amount along with interest applied within a band from 30% to 300% APR.
Security you need to furnish
The title of the car will be transferred to the loan financing company for the duration your repayment. The title is restored on fulfilling your repayment obligations.
Whatever angle you examine the issue, it goes without saying that car title loans are here to stay because they fulfill urgent needs of individuals in society that require an emergency cash infusion in a crisis situation when family, friends and bankers cannot help them out.