Thursday, May 30, 2013

What is a title loan?

Sometimes in life things come up and the savings isn't always there.  What happens if something happened to my dress/venue/ring right before the wedding and I needed some cash to pay for a replacement until insurance or extra funds came through or kicked in?  So, I've thought about a title loan on one of the cars.  Would that be an option? What is a title loan?  
A  title loan is where you agree for a lien to be placed on your car in exchange for a cash amount plus interest.  The loan amount is agreed upon between the two interested parties and compensation is set up on monthly installments with interest.  If you do not have the payment then the lender is able to repossess your car and sell it to pay the remainder of the loan.  The loans are short term in duration usually and the interest is high.  From what I can gather the value of the vehicle is what determines the amount of the loan able to be used and not the person's credit history.  It seems that many loan companies also require that they retain the title of the vehicle as collateral.  If I were ever to need a loan like this the first thing I would do is to find some places that offer free estimates. This way I could find the place offering the best rates, most money, and easiest payment process.  I don't recommend using quick cash methods to get new things, but sometimes life brings situations that require something like this, so if your going to get a title loan do your research and find the best situation for you!  

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