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.

Title loans or pink slip loans are obtained by borrowing money against the equity in your car.  Choosing a title loan should involve careful planning.  These are the questions that you should ask yourself before deciding to apply:

• Do you own the car completely? – Obtaining a title loan requires that you hand over the title to your car while you are repaying the funds borrowed.  You can continue to drive your vehicle, but if you do not repay the loan your car will be repossessed by the lender.
• What is your plan for repayment of the loan? – Title loans have a fixed period for you to pay back the funds borrowed.  Assuming that you are strapped for cash, which is why you are taking out the loan in the first place, you need to have a plan in place to repay the loan.  Otherwise you can get caught in the vicious cycle of taking out one loan to pay off another.
• Finally, how do you choose a reputable title lender?  Most lenders offer their services online by having you fill out a short application located on their website.  However, many title loan websites are simply a “middle man” and not directly affiliated with the title lender.  They charge a fee for use of their services that will reflect in the amount of fees/repayment paid back by you!

A lot of people who are short on cash have to turn to a payday lender to meet their immediate cash needs.  However, lawmakers in South Carolina are looking to make it tougher for consumers to use this loan product.

Given current economic circumstances, folks are finding it hard to make ends meet.  You try to stretch your paycheck until the next one comes and you find yourself a little short.  So it is easy and makes sense to visit a payday lender to get the funds that will help you get by until your next check.  This is the story for thousands of people in South Carolina.

While some citizens see the benefits to using a payday lender,  South Carolina lawmakers don’t.  They plan to put restrictions on payday lending such as – setting minimum wait periods before a customer could go and obtain another payday loan, having only one loan at a time, and capping the amount borrowed to $600.

The bill is now headed to the Senate Banking and Insurance committee.  Many customers who rely on this source of short term cash oppose the passing of these restrictions.