What Are The Pros & Cons Attached With Car Title Loans?


13 Jun 2013

Before discussing the advantages and disadvantages of car title loans we must know what exactly these loans are and how it works. Basically, car title loans help people to take small financial help by putting their car title as collateral against the loan amount. It means one can take the loan only for the car which has paid in full. These are short term finances that need to be return within limited time period with the interest rate charged by the lender.

Like any other loan option these funds also have some pros and cons attached with these finances. Here are some them which could assist you to take right decision about taking or avoiding these loans according to your circumstances.

Few advantages that make you attract towards these car title loans:

Instant Cash Right In Your Bank Account:

These financial offered are quite suitable for the people looking for quick cash help to meet some or the other short term financial problem. With these finances people can meet their any need without any restriction. The process of availing these funds is so simple that you could able to grab needed funds within few hours of applying directly in your bank account.

No Credit Check Process:

As these loans are offered against the title of borrowers car lenders do not bother much about their credit history. These secured loans do not involve credit checking in its process which helps people with poor credit history to avail the needed amount without any restriction. All you need to do is to put your car’s title as security and take the required funds.

You can keep and use your car:

One of the biggest advantages attached with these funds is that even though you are putting your car as collateral, you can still use it like you always do during the loan period also. Availing these loans doesn’t change your lifestyle if you repay the amount on time.
 
Few disadvantages that make you think twice or make you avoid towards these loans are:

High Interest Rates:

As these finances are offered for the short time period you need to pay slightly high rate of interest. Lenders charges different rates; that is why one much compare the charges of different lenders in order to get the loan at affordable price. These funds can be more expensive in case borrower could not able to keep up the repayment which make him pay extra charges.
 
Risk of Loss Your Car:

It is always risky to keep any of your assets as collateral. Even you keep your car in loan period but risk of losing it will be there all time. In case you could not able to pay back the amount on time you can actually lose your car. Lender can actually repossess and sell your car if you could not able to return back the taken amount with interest charges. That is why; one must return the cash on time or if he/she thinks they are unable to pay back the funds ask for the extension before their car got sold by the lender.

Consider all its pros and cons and they make the decision which would be right according to your situation.

Summary:

Car title loans can help people in their difficult time to take instant small amount of funds against the title of their fully owned car. By taking these funds one can meet their any need but one must consider all its pros and cons before making any decision.

The operator of this website is not a lender and does not make credit decisions. The information you provide will be used in securing you a payday loan with one of our carefully selected panel of leading Payday Loan Lenders in Australia. The personal, financial and employment information that we collect is stored electronically during the duration of the application and is removed from our system upon acceptance from the lender.

Please note that payday loans are meant to be used for short term financial emergencies and are not designed to provide long term solutions

We expect you to repay your loan on the date agreed, so if you do not think you are in a position to make your repayment, please do not apply with us in the first place. It is not worth risking your credit rating for such a small amount.