Are you in desperate need of cash and have been told that car title loan is more trouble than it’s worth?
Common misconceptions surrounding auto title loans can include:
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You will surely lose your car over time.- You can’t pay the loan off early without being penalized.
- All car title loan lenders shady.
- A car must be worth tons of money to gain a loan.
The truth behind auto loans is that they were developed as an alternative form of obtaining a loan for those who have recently undergone personal bankruptcy or foreclosure, have poor credit ratings, or don’t have established credit.
The concept is that if an individual puts up an item for collateral (a car in this case) there is an actual “object” that the lender can take if the loan isn’t paid off. In many ways, this makes much more sense than a bank loan that is given out of sheer faith of repayment.
Beginning with the first misconception, one who takes out a title loan won’t lose their car if the loan is paid off within the number of months agreed upon. A title loan lender can take action to possess the automobile if the loan terms are not met over time. If for any reason you think you will be unable to make the agreed upon monthly payments, the best policy is to find another source of funding.
Second, an auto title loan can be paid off as quickly as you would like. If for any reason you gain an influx of cash, you have the right to pay the loan off remaining balance on the loan.
Third, because of the current economy, more and more Americans are turning to title loans for instant cash. Thus, interest rates are becoming more competitive each day and lenders are expected to provide excellent customer service. Take time to look around to find a title loan specialist that you trust and terms that are to your benefit. Read the fine print before you sign the contract, and don’t be afraid to walk away if you get a bad feeling. Also, never ever give your title loan to a dealer to keep. Run for the hills if a lender asks to keep your car title, it is not theirs to keep. You will need to show your car title to prove you own it, but they must give it back.
The final misconception is that you must be the possessor of a luxurious and expensive car to receive a loan. This simply isn’t true. As long as your vehicle holds some equity, you should be able to gain an auto title loan up to a certain amount.
If you have more questions, it is advised that you Google Auto Title Loans. There are tons of great resources out there for you to review!
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