A car title loan is a high interest loan. There are other options available if you have better credit or if you have any close friends or family members that are willing to help out. Below is a list of different types of loans you may want to consider before taking out a car title loan. Car title loans do require that you are able to prove income. If you just get paid cash and don’t deposit into a bank account it will be more difficult to qualify for a car title loan.
Car title loans
Car title loans are when your vehicle as collateral and still get to use it. Lenders give you a loan based on the value of your vehicle and your current incomer The lender becomes the lien holder on the title. Lien holder means legal owner. If the borrower were to default on the loan the lender has the option of having the vehicle repossessed. You risk possibly losing your vehicle if you default on this type of loan. If you need more information on car title loans, find out how they work.
Unsecured loans generally pertain to people with decent credit. The back has no collateral to go after if you default on these types of loans. However, they can leave a negative mark on your credit. For the most part, people who go after car title loans have bad credit, and need the money fast.
If it’s possible you might want to ask a family member for a loan before committing to a car title loan. Don’t let your pride get in the way, it’s really easy to fall on hard times, especially when unforeseen occurrences occur. If it’s possible do it because you’ll be saving a lot of money on interest. Do what you have to do if it isn’t possible.