The Value Of Title Loans

By Author: Alisdair Cosgrove
Total Articles: 184
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When you're in a real bind for cash and you need that cash immediately, a car title loan can be a great option for you. If you go into this type of loan with the exact knowledge of how it works, this loan option can be a life saver, or at least credit saver.

The cash from a car title loan is usually made available on the same day, as the loan can be done quickly. As long as it's paid back in a timely fashion, this can be a great option for a loan with less paperwork and less headaches.

The value of your paid off vehicle is what you use to secure a car title loan. As a general rule, a title loan will not be granted on a vehicle that is not free of debt and usually the loan will be granted only for the owner and title holder. The resale value of the titled vehicle will be the base amount of cash offered on the title loan. An older less gently used vehicle is going to help you receive a lesser amount on a title loan, but a newer vehicle will bring in a loan amount of greater value.

These types of loans generally carry high interest rates, which do encourage the borrowers to pay them off more quickly ...
... and create a larger profit margin for the lender. If you pay back the loan within thirty days, the average time limit of the loan, you will pay one large interest fee; it will seem to be worthwhile if you are in great need of money at the time.When it is not possible to pay the loan back within 30 days, it may be rolled over to the next month for a period of six months, but each time it is rolled over, there are extra interest fees added on. You may find you are owing a great deal more than you borrowed, because these extra fees can mount up quickly.

If at the end of six months you are not able to pay off your loan, your car is at risk to be repossessed by the lender and sold to recoup their losses.

If your plumbing has gone out and you're trying to clean up three feet of water in your home, a loan like this may be your answer. If you have unexpected medical expenses, this type of loan can also take care of that. These are examples of how to use this type of loan in a responsible way.

Before agreeing to this type of loan, make sure you have a plan for repayment, so you will have only one finance charge to pay and you will be sure to have the money you need on time.

When used appropriately, a car title loan can save you, from ruin. It is something that will take careful consideration before agreeing to, but it will be there for you in your time of need.
Alisdair Cosgrove interests include mortgages, loans and other personal finance topics and has been writing for numerous years and can find more of his articles at the UK site Loan Empire, offering loans and also great information on many tracker mortgages.