subject: Exploring Auto Title Loans: What They Are And How They Benefit Consumers [print this page] Finding yourself short on cash can be highly stressful and more than a little embarrassing. Unfortunately, today's economic woes have caught many families unprepared to pay for higher than average expenses, unexpected purchases, and ever-increasing medical costs. Something as simple as a flat tire or a trip to the doctor's office can disrupt a family's financial situation. Very often, credit card and payday cash advances are used to carry the family through these rough times, but there is a better option: auto title loans.
Instead of racking up even more debt on a credit card that is already stretched to the limit or getting a payday loan at astronomical interest rates, equity loans on car titles are fairly easy to acquire, do not require a credit check, offer low interest rates, and the money is in your bank account in no time at all.
What Are Auto Title Loans?
Auto title loans are short term cash sources secured against the title of a vehicle. This added security allows the lender to offer significantly lower interest rates than other fast cash options, regardless of a current credit rating or past bankruptcies. The online application process is convenient and secure and a decision is made rapidly, providing borrowers with the money needed as soon as possible without charging outrageous interest rates.
Comparing Cash Sources
Most people think of going to a bank when they need to borrow money for a big purchase, such as a house or a car. These large purchases are investments in valuable property. Banks are able to offer lower rates because the item being purchased is valuable and can be offered as collateral, which provides security to the lender. These are called 'secured' agreements. Unsecured agreements are those made without any collateral, thereby increasing the risk of repayment to the lender. As a result, they come at a higher price.
The most common of these unsecured arrangements are credit card and payday cash advances. Credit card cash advances often require the payment of fees and the interest rate is higher than for purchases. Also, many card holders do not realize that their payments are applied to purchases first. The cash advancement debt, held at a higher interest rate, is not paid until all of the purchase debt is paid off. This means that the more expensive debt is around for a longer period of time, incurring a greater interest expense. Also, if the interest charged puts a borrower over their credit limit, they are also hit with penalties, interest on the penalties, and so on. The cycle can be devastating. Unlike credit card cash advances, which come without the fees, higher interest rates, or risks to your credit rating, equity loans on car titles are convenient, secure, and affordable.
Payday advances use the fact that a person has a job as reason enough to approve a loan. This convenience comes at the highest price allowed by law. Interest rates on payday advances can be in the thousands, once the rate is calculated over the period of a year. This means that the amount paid back can be many times the amount that was borrowed in the first place. Equity loans on car titles, however, offer low interest rates, reasonable payment schedules, and the freedom needed to get back on your financial feet.
Qualifying & Applying
To qualify, borrowers must be at least 18 years of age, they must own a car worth at least $2500, and the car used as collateral must be 10 years old or less. The borrower must have free and clear title to the vehicle being used as collateral. This means there are no other liens against the car or truck. The borrower must also provide personal information, driver's license, social security card, vehicle registration, proof of insurance, most recent pay stub and a current home phone bill and electric bill. The borrower must also provide four character references and have a spare set of car keys. All of this, aside from the keys, can be provided online through a secure website, all from the convenience and privacy of home.
Benefits Of Auto Title Loans
Equity loans on car titles are able to provide borrowers with a lower than average rate when a car is offered as collateral. Auto title loans are easy to apply for online and approval occurs quickly. While most equity loans take days or even weeks to be approved, equity loans on car titles are often approved within 60 minutes.
Instead of paying outrageous interest rates, or waiting weeks for a home equity loan, borrowers can resolve short term cash needs with secure, convenient, and reasonably priced auto title loans today.
by: Chris Harmen
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