Corporate Flyer Blog

Many consumers looking for loans to meet their short term cash needs do not know about the ease and availability of obtaining a title loan.  You can even apply online, directly from the lenders website.

Title loans are loans that are similar to payday loans as they are offered for a short period of time -usually for fourteen to days with an option of extending the the repayment terms.  This term varies from lender to lender.  Title loans are mostly used for unexpected cash needs that can come up – short on rent, dental and medical bills, gas, emergency travel, etc. The only difference between title loans and the payday loans is that to apply for a title loan the borrower must be the owner of a vehicle.  The vehicle will be used as collateral to secure the loan.

Title loans are beneficial in many regards but there are a few pitfalls, so it is important to seek a reputable and knowledgeable lender who can answer any questions that you may have.

When you are facing a financial crisis or emergency and have bad credit considering a car title loan may be your best option.  It is easy to obtain online approval for a title loan – all you need is your vehicle for collateral.

If you default on your payments and become delinquent, the lender will take steps to repossess the vehicle.  They will then sell your car to recover their debt.  However, most lenders will work with you to find repayment terms that suit your needs.  In order to borrow the max amount for your vehicle, you need to know how much equity your vehicle holds.  In other words, how do you get an accurate evaluation of your vehicle’s worth?

It is beneficial to educate yourself on how lenders determine the value of your vehicle.  The major factors that lender’s consider are:

• Vehicle make and model:  this gives the lender an idea of how safe your car is and how much value it holds.  Models and brands that are really popular are often considered safer and have better resale value.
• Automobile history:  if your car has been damaged in an accident this makes it more difficult to sell and will decrease the value.  The lender will not be willing to loan as much on a damaged car.
• Mileage and age:  the age of your vehicle and the amount of miles will also determine the loan amount.  The older the automobile and more miles – the less the lender will loan.
• Upgrades and options:  interior upgrades, new tires, wheels, etc. will increase the value of your vehicle – therefore increasing the amount of the loan.

A popular online tool to determine the value of your vehicle is Kelly Blue Book – www.kbb.com.  This site lets you put in all of the details about your automobile and will calculate a precise market value.  Once you have assessed the value of your vehicle, find a reputable lender and fill out their online application.  A loan approval specialist will contact you with further instruction on how to obtain your cash.

We have all been in this situation – crossing our fingers hoping that you have enough money in your checking account before the check or online payment for bills clears the account.  The obvious solution is being responsible with your hard earned money and avoiding this dilemma all together, but sometimes this is just not an option.  NSF fees are on the rise and are extremely lucrative for the banks.  Their computer system has also become increasingly savvy at rearranging debits from your account to maximize the amount of NSF fees charged.

For example, you may have $ 15.00 in your checking account, but without thinking about it you use your debit card at the grocery store for $ 19.00.  The register will accept your debit card, but be advised that an overdraft charge of $ 25.00 – $ 39.00 (depending upon your banking institution) will be deducted from your account.  And sometimes it does not even stop there!  Some banks will continue to charge your account $ 2.00 – $ 5.00 per day, until the account has a positive balance.  In addition to monthly maintenance fees.  So, at the end of the day – your $ 19.00 purchase can cost in excess of $ 50.00 in fees.

A payday loan of only $ 100.00 (to be paid back with your next paycheck) would have only cost you $10.00!!!  By taking a few minutes to apply for a payday loan online you could have saved yourself $40.00.  I find this to be the best option for short term cash needs.

Having a bad credit score can prevent you from gaining access to fast cash.  Banks and credit cards are becoming increasingly stringent on loaning money or increasing the credit line on your plastic.  One way to get your hands on some fast cash is to take out a car title loan.  Typically, these lenders do not require a credit check.  The lending company will ask you to bring your vehicle in for evaluation and then gives you a loan based on what they think your car is worth.  However, your car must be paid for and free from having any liens against the title.  Other requirements may be showing proof of income or employment. 

As with any loan, it is important to evaluate all of the alternatives that you have for getting the cash you need.  Be sure to compare interest rates, fees, and repayment options before signing on the dotted line.