We sometimes need some quick cash when an unexpected event occurs, and that is money that cannot wait until payday. It is possible to get that quick cash that you need with a car title loan, and the loan can usually be completed in one day or less.
People misunderstood that car title loans are only for people with very bad credit and are desperate measures of last resort. However, this is not the case at all. The little bit of interest you pay for the use of those funds, along with the ease and speed with which you can access your cash, make it all that much more attractive as an easy way to get quick cash.
To qualify for a car title loan, your car must be paid off and you must not be making any payments on it. You can get the largest amount of the loan based on the resale value of the car, so if you have an older car in good condition, you can get a larger car title loan. To be approved for a loan, you must also be the owner of the vehicle.
In contrast to traditional loans, car title loans usually last for 30 days, although some can be extended. As a result, you do not want to keep it for too long since the interest rate associated with this loan reflects its convenience and relative lack of paperwork, which means that the interest rate is usually quite high. There are many reasons for this, including convenience, speed in getting the money, and encouraging you to pay it back promptly. It’s also a way for the lender to create a revenue stream.
If you need to roll the loan over into the next month or even months beyond that, the interest rate becomes high and difficult to pay to do so unless you have to. If you extend the loan, you may owe twice what you borrowed originally because of that high-interest rate. If you have trouble repaying the loan, your car may also be repossessed, so be sure you devise a repayment plan before you begin.
When you need cash quickly, car title loans might be the best option for you. A car title loan can help you get the money you need quickly due to the greatly reduced amount of paperwork required, plus the fact that these loans can often be approved the same day, sometimes within hours. Sometimes you need the cash now and cannot wait for several days so you need a conventional loan from a bank or credit union.