There are some people who find themselves in financial dire straits, when they do ,they think the only way to get emergency money is to take out a title loan. Title loans let you borrow money against your vehicle, as long as it has been paid for in full. The amount you get for your loan will depend on what your vehicle is valued at. Sadly lenders know that most people who take out title loans are in financial trouble and they take advantage of this fact and they charge the poorest people the highest interest rates and fees. Rates that they wouldn’t dream of charging to people who are better off.

When you apply for car title loans the lender will check over your car or truck and give it a value. This value dictates the amount of loan that they give you. Generally they will lend you between 20% and 50% of the value of the car. They will also take into account your credit history, the better your credit rating, the higher the loan you get will be. Lenders will only give out this small percentage to the borrower so that they have a better chance of recouping their money if the loan is not repaid.

Title loans really should be the very last resort, because of the huge interest rates there is a chance that the loan will never be paid back, or if it does it will take many years. On average the APR on these loans can be about 300% and it can go as high as 500%. Plus there are also so many fees and hidden fees that they will charge you, like processing fees, origination fees, as well as fee for installing a kill start switch in your vehicle and any other fees that they are able to charge you that are within the law.

The lenders install the kill switch into the vehicle so that if you miss any payments they are able to stop you using your car or truck. This means if you are at the shops, at work or even in the middle of nowhere you will not be able to use your car. Some lenders will give you a grace period of a day or two just in case there is something wrong with your bank and they haven’t made the payment for some reason, but there are some that won’t give you this grace period, and leave you stranded right away. Not only could you be stranded in the middle of nowhere you it could leave you unable to get to your work, meaning you have no more income and making your situation even worse. This is why auto title loans should be avoided at all costs.

If for some reason you are unable to make any repayments this will result in you paying even more fees, in some cases it can lead to dates in court, after you have paid these late fees and court fees you could end up paying a lot more than the loan is actually worth. Added to that the lender can seize your car and sell it on for its full value and keep all of the profit they make. So not only do you lose your car, you are also heavily out of pocket because of all the extra fees. Many companies can get away with this because of slack regulations regarding title loans in many states.

If you manage to get yourself a decent lender then they may let you skip some payments if you have a good reason for doing so, though you will have to make the arrangements for such a thing well in advance. Again you can incur even more fees, called “roll-over fees”, plus a late payment fee. Some lenders will also make you pay off the interest for that months loan and let you away with not paying back the loan itself. This again is not ideal, you pay more fees, the loan costs you more money and it also takes you longer to pay the loan back.

I hope after reading this that you realise that car title loans are to be avoided at all costs. Especially if you are currently in financial trouble as you will end up even worse off after you have taken the loan out. Even if you are desperate for emergency money you should be avoiding these loans. There are so may more loan options out there that you can take advantage of, no matter what your credit rating is like there will be a better option for you. Plus you can keep your car, make it into work and hopefully, over time get out of you financial strife.

If, for whatever reason, you decide you want to take out one of these loans, online title loans are the best ones to look at – even the best aren’t that great – there are many lenders for you to compare and hopefully you will be able to pick out the best of the bunch.

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Posted by on October 25th, 2010 :: Filed under Title Loans
Tags :: auto title loans, car title loans, title loan, title loans on cars, title loans online

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Because of how the economy is right now it can be pretty hard to get a loan. People still need cars to get to work and what not, but if they need a new car they can be put off because of the hugely expensive interest rates that everyone is being faced with these days, and if they have got a poor credit score then it makes it even harder to get car credit. It is still possible though, to get a car loan even if you have bad credit. Coming up are a few ways in which you can improve your chances of getting car credit.

Look At Your Situation

Before you even think about going out to get yourself a loan you really need to have a good look at your finances. Lenders love to see a nice clean credit history before they start dishing out loans and also steady employment over several months. So if you have just come out of college or school and are looking to get a loan, then it would be a wise idea to give it six months to a year of stable employment before lenders will see you as being suitable for a loan.

You also need to have a good look at your budget, you need to work out exactly how much you have left over to pay for a loan after you have paid for everything else, your mortgage, food and utility bills and so on. You will also want to have a look at your credit score, all lenders have a look at this when they are considering you for a loan. If you have a credit score of less than 680 then the chances of you getting a loan from a regular lender is going to be pretty slim to none existent. You really want you credit score to be as good as possible, the lenders use this score to work out your interest, so the higher your score the lower the interest rate you pay. Before you start applying for loans you should ideally pay off all of your other debt. Its not possible to get instant car credit, it does take a bit of time an effort.

Shop Around

A lot of people go into the dealership and find a car they like then just take the first finance offer that the dealer makes them, which almost always turns out to be a poor deal and the buyer spends a whole load more than they actually need to. Dealers generally charge huge interest rates and take advantage of people who are either clueless, or desperate for a new car.. Before you go to the dealership you should do some research on the internet, there are a load of sites which allow you to compare all of the different loans that are currently available. Use your credit score that you found out earlier to work out the interest rates that you are going to be charged, then go back to the dealership with all of your new found knowledge and you will be in a much better place to decide if the deal they offer is good, and if it isn’t you have power to haggle.

If you can get finance outside of the dealership then you really shouldn’t need to consider the finance that they offer. If you have a loan from an outside company it puts you in a much better position to haggle on the price of the car, obviously saving you more money.

Other Places To Get Credit

There are of course many other places to get loans away from car dealers. If you search online there are an infinite number of sites that will compare pretty much every loan site there is. You should also be able to find a loan that has good terms and also lower fees. If you have bad credit then there are plenty of companies that will be able to accommodate your situation, and there are also lenders that will deal with you even if you have been declined for loans elsewhere. It really does pay to shop around, try to get as many quotes as you can, to see all of the options before you make a choice.

You could also try credit unions, they are good option if you are looking for good rates, they are also, generally better with you if you have bad credit. You could speak to your employer to find out if they have their own credit union. A credit unions fees are also generally a lot lower too.

It can be pretty hard to get loans these days, so you need to be careful with all your finances and you need to know about all of your available options, if you have a lot of knowledge about the loans available you stand a better chance of getting a better loan. And if you have bad credit it doesn’t automatically mean that you are unable to get car credit loans, because there are so many different places to apply there is always someone who will accept people in your circumstances.

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Posted by on October 19th, 2010 :: Filed under Car Credit
Tags :: bad credit, car credit, car credit loans, car loans, instant car credit

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