We all know the advantages we can get from a car title loan, in areas such as personal finance and legal control. However, in spite of knowing these points we can ask ourselves, is it a good idea to look for these services? If you are a person with these doubts, then now you will know some fundamental keys to make your decision.
What to know about…
We live in a society where money is a fundamental part of our daily life, it’s necessary to eat, to buy clothes, to pay debts and even to give us certain luxuries from time to time; that is why there are different alternatives to access it and one of them is to use a car title loan service, but you must pay close attention, because this is a double-edged sword.
While it’s true that using your car as warranty for a loan can help you settle your financial debts, it’s also important to understand that if you default on your creditor’s monthly payments, the creditor can repossess your car.
We are talking about a business that has remained afloat for decades and has evolved in such a way that it has experienced changes in its platform, making use of more and better technologies in order to reach a wide audience. Car Title Loans California works directly with these plans, and thanks to their different programs, we can visualize a balance and flexibility in rates and fees that are comfortable for any client.
How much money can I get?
The loan is based on the value of your vehicle, you can get from 30 to 50% of the value of your car, but even if it seems tempting, it’s not recommended that you access all the money you are offered, but what you really need. Remember that the higher the debt, the harder it will be to repay, and if you don’t meet the terms of the contract, you may end up losing your car. Also the percentages you can get may change depending the company you’re working with.
The good and bad side
One of the best advantages of a car title loan is that you don’t need so much formalism to apply for it, by this we mean that you don’t need to set out so many requirements, and your credit history is not very important either. Lenders are governed by the value of your car; as long as the value of your car is higher than the credit requested, they will not hesitate to approve it.
Another important advantage is its speed, since you get the loan almost immediately, all you need to do is to show what you have to offer in case you can’t pay off the instalments demanded by the lender, and in this case it would be the car; if you meet this requirement, you will leave the place with the money in your hands.
Although, as expected, not everything is rosy, as car title loans also have big drawbacks, one of which is that payment rates are very high and can even exceed 100%.
Another disadvantage is that these loans are short-term, which means you can’t afford to pay them off for long, and if you’re late on any payments, the debt will get bigger and bigger until you reach the point of foreclosure. So don’t take this lightly.