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.

Tennessee lawmakers will be discussing proposed changes to the title loan industry in a house committee on Tuesday.  Some of the proposed changes are limiting the administrative fees charged by title lenders with their ultimate goal of capping the interest rates at 36 percent.

Under current state law, title loans are allowed a 30 day repayment term.  If the loan is not paid off in 30 days it will automatically roll into a new loan in which the lenders are allowed by the state to charge a 2 percent interest along with an administrative fee.

Supporters of title lending see this as a small price to pay for the ease and convenience of utilizing a title lender.  These loans provide an alternative for consumers who are are unable to secure financing from a mainstream financial institution.

We are in the midst of a recession that is taking its toll on our country’s working class.  Many Americans are finding it hard to make ends meet and are barely getting by.  Access to short term loans, such as payday and title loans empower the working class by providing access to the cash they need until their next paycheck.

A typical payday loan costs consumers $ 15 dollars for every $ 100 dollars borrowed.  This is less costly than paying overdraft or late payment fees and gives consumers peace of mind until they are back on their feet.

Even if your state does not allow title lending you can still get the cash you need by visiting a bordering state that does not ban these lenders.  For instance, say you live in Florida (where title lending is not available) – you could drive to Georgia or Alabama to obtain the loan!  It is a pretty simple process.  Just locate on online lender, input your area code, and a list of lenders close to you will be generated.  Do not let state laws prevent you from obtaining emergency cash!

Reputable payday and title loan lenders continue to fight an uphill battle on the perception that their industry faces.  This is caused by the numerous disreputable lenders that give a bad name to the biz. 

Company spokesmen for one of the largest and reputable payday and title loan lenders indicate that their company policy follows a best practices guideline and seek to educate consumers on the benefits of utilizing reputable lenders.  If people cannot pay back the loan when they are due, whether it is two weeks or a month, they are given four pay periods to pay the loan back with no additional fees.

Reputable lending stores also display large signs that clearly states how much people will owe for the loan amount that they borrow.

Industry reps understand the concerns that consumers have about the fine print and may not understand what they will actually repaying.  Industry insiders realize that they are bad actors or abusive lenders who are not good for anyone. That is why all of the reputable lending companies are pushing for complete transparency.

Payday and title lending stores are regulated at the state and laws vary from state to state.  Please refer to some of my previous postings to find out what rules apply to the state in which you reside.

With 40 – 50 percent of people living from paycheck to paycheck, if an unexpected financial issue arises, it is no longer easy to tap the equity line on your home or get an increase on your credit card limit as banks are beginning to pull back on offering those lines of credit – even to high qualified borrowers.  So many people have to turn to cash stores.

Lawmakers last ditch efforts to revive a shelved bill aimed at reigning in payday lenders failed in the House on Tuesday.

Supporters of House Bill 396 argued that payday and title loan companies are akin to legalized loan sharks that take advantage of the impoverished.

Opponents of the bill said payday lenders provide valuable lending services for people who would otherwise not be able to secure a small loan for things like groceries or utility bills.  Some even argue that if unless you are going to require that all banks loan money to people with no assets, you should not take away the one avenue that they have.

Payday and title loan lenders are a viable solution to people with short term financial needs.

The Payday and Title Loan industry has always had more than its fair share of critics who would like to see this lending practice eliminated altogether.  They contend that Payday and Title Loans push people into debt by charging exorbitant fees and interest on these short term loan products.  Critics also argue that it is too easy to obtain a Payday or Title Loan, which may lead to a situation in which people are unable to repay and force them into accruing more debt or having to file bankruptcy.

My argument is this…  Of course they charge a higher interest rate!!!  But these loans are not annual loans so the APR issue is not pertinent.  They are merely a short term financial solution.  In many instances, the consumer is seeking this type of loan product to avoid a more costly consequence like bank overdraft fees and/or late payment penalties.  I am not convinced that a small, short term loan is pushing consumers into bankruptcy.

To provide further support for the need of this industry recent studies have shown that 90% of the Payday and Title Loan consumers pay their loan back on time.  Jeff Kursman, a payday loan provider, recently debated the need for his product.  He says “If you look at studies from the University of Chicago, Clemson, Dartmouth and Columbia, you’ll see that they’ve concluded that bankruptcy actually goes up when people are prevented from using our product. There are 19 million Americans that use our product in a year. If you take us away, you’re leaving them with more expensive alternatives. That’s not consumer choice.”

In conclusion, I feel that there is a need for these loan products.  For me, they have been a reliable and convenient source of cash when I find myself needing a few extra bucks until payday.

Auto Cash USA can offer you the emergency cash that you need!  Their Car Title Loan program is a good option for people having not so perfect credit.  The criteria for loan approval is not on the basis of your credit history, instead it is dependant upon a free and clear car title – meaning that you own the car and their are no liens against the vehicle.

Auto Cash USA understands your financing needs and offers a quick approval process for your car title loan.  Please visit their website at www.AutoCashUSA.com to fill out their short online application.