Money, always the necessary evil; when it’s there, it’s fueling our capitalistic tendencies and when it’s not there, it is toppling world economies. It gets worse for those without money and without credit. So what’s the practical solution here?
The tough economic times we are experiencing have meant that we’ve all had to make some serious sacrifices in order to maintain our lifestyles or even just foot the ceaseless bills. When you are in a pinch, getting a loan is definitely an easy way to get by. According to a press release published on prlog.org, more than 70 million Americans are struggling with either bad credit or no credit history, and these credit issues make it even harder for them to access loans. To make matters worse, banks have also become stricter when it comes to lending money to consumers.
The most important thing you can do is improve your credit score, and to accomplish this you need to have credit. So if you have no history of ever taking a loan or are living with a bad credit history that you need straightened out ASAP, getting a car title loan would be a good place to start.
What are Car Title Loans?
According to Wikipedia.org, car title loans in Florida, also called title loans, pink slip loans or auto title loans, are types of loans that require you to use your car as collateral. You must be the owner of the car free and clear, owing no money on the car. These loans also do not require a credit check, and are therefore great for people with bad credit, no credit, or little credit history. Some lenders require that you pay the loan off in one lump sum, while others have flexible repayment schedules. The lending rates also vary from lender to lender, and obviously the maximum amount you can borrow will depend on the value of your car.
Car Title Loans Advantages
One of the biggest advantages of title loans is that they are processed very quickly, and the borrower is able to get the money within a few hours. You should know that auto title loans are secured loans with few requirements for you to meet. Some basic documents that the lender will usually ask for include the car title, a government ID, and a pay slip or proof of regular income. Lenders do not actually care about your credit history and will only need to assess the condition and value of the car that you’re putting up as collateral. With this in mind, car title loans have a high approval rate, as there is virtually no risk to the lender.
Auto title loans are also perfect for people with bad credit history. Banks are not likely to jump at the chance to give you the five grand you so urgently need if you have bad credit. If you own a car, though, a title loan will get you the money.
One other benefit is that even with the loan, you are still able to keep your car and drive it. This means that your lifestyle does not change, and you still get the money.
How to Get the Loan Online
Different lenders use different applications to provide the loan facilities, but the information needed is usually similar. Many websites require the name of the car owner, the phone number, and vehicle information, including the make, color, year of manufacture, and model. With most lenders your loan will be processed within the hour.
Repaying Car Title Loans
Since title loans are mostly short-term emergency loans, some lenders will require you to repay the loan within 30 days. However, this rule differs with different lenders. Some will allow for longer payment periods. Confirm the repayment schedule with your lender before you commit your car.
Tips for Borrowers
Americans have paid heavily for the financial burdens of the country. And even as the greater majority struggles to get by with bad credit and no credit, the highly capitalistic system has not spared them from loan providers of all forms and sizes. Car title loans providers are some of the most predatory lenders, but as a borrower, there are ways to ensure your lender is not charging an exorbitant rate.
Always go to the title loan lenders who already have a solid reputation. You also need to ask for a detailed quote which should also include interest rates. Make sure your lender is clear about the interest rates attached to the loan, as some offer monthly rates and others use annual rates.