While requesting a friend or a relative be okay for a small amount it can be remarkably difficult to raise a relatively larger sum. If your credit cards are maxed out and you have not been regular in making the monthly payments, a cash advance will be almost impossible to get on terms that look like remotely being favorable. A car title loan can be a very smart option that gets money into your hands in super-quick time, while saving you substantial amounts of money in interest payments.
Understanding Car Title Loans
Car title loans work in the same way as pawnshop transactions, only the asset that serves as collateral is your vehicle. If you have a clear title to your car or any other vehicle, you can approach the companies that offer car title loans San Jose for a cash loan. These loans will typically not exceed 50% of the value of your vehicle, subject to a physical inspection of the condition it is in. Simple documentation transfers the title of the car to the company advancing the cash loan; however the basic difference with a pawnshop is that you continue to retain possession and right to use the car without restriction. Of course, you need to be regular with the interest payments and be able to return the principal at the end of the loan tenure or roll it over. In case you are not able to meet the interest payments, the car can be possessed by the lender and you will have to forfeit it – remember the title of the car is already with the lender. Typically car title loans are taken for relatively small amounts when compared to the value of the car and for a short time to tide over personal financial crises.
Why Is a Car Title Loan an Attractive Proposition?
Car title loans have become popular due to a number of reasons. Firstly, you can take loans of even very small to reasonably large amounts depending upon the value of the car you offer as collateral. The other main reason is that the loan application process is extremely quick and fuss-free, making it ideal for situations where you need cash on an emergency basis and have an empty wallet. There is minimal documentation and most importantly the loan can be availed of even by persons with poor credit scores as creditworthiness of the applicant is not a consideration for extending the cash loan. The formalities can be completed online or by simply speaking to a credit counselor over the phone regarding the vehicle details and your personal details. Decide on the amount of loan required and handover the car papers along with a spare set of keys with personal documentation as required and you can drive away with cash in your pocket in less than an hour.
A Great Money-Saving Option
Just because you are in a desperate situation, it does not have to mean that you throw caution to the winds and take the first cash loan that someone agrees to give you. When urgency is the need of the hour, you need to be taking to people who will appreciate your urgency and respond fast. Payday loans and cash advance on your credit cards as alternatives can be examined but typically you will be able to get more favorable terms and interest rates with a car title loan, especially when you have a poor credit score. When you are in need of emergency cash that you are confident of being able to pay back soon, you should definitely consider a car title loan.
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