When people need money in a pinch, there aren’t always a lot of options they can count on. Lending companies often rely solely on a person’s credit score and can leave them waiting for several days or even weeks before they have a check in hand. If you’re living in the Wilshire area, however, there are auto and car title loans that can get you the funds you need.
A car title loan, also known as a pink-slip loan or title pledge, is a short-term loan that uses a person’s vehicle as collateral as opposed to relying on their credit score. The amount of the loan depends on the value of the applicant’s vehicle.
Applying for this type of loan is a quick and effortless process. All you need is a car, ID, and insurance to get the application process started. The lender then holds on the title during the length of the loan, then returns it to the applicant after they have paid the funds back in full.
The main advantage these types of loans offer are fast cash. Typically, an applicant can walk in the door and back out with a check in hand. This process is a lot faster than acquiring a traditional loan from a bank or credit union. Secondly, since the loan depends on the value of the vehicle, you do not have to worry about what your credit looks like. This makes it a great option for those with bad credit scores or little to no credit at all.
Car title loans, when borrowed from the right company, can also yield lower interest rates than a traditional and payday loans. This also accomplished by borrowing from a direct lender as opposed to a broker. Companies like Windsor Quick Funding Loans have become well known for their low APR percentages.
Many choose to avoid this route at all costs due to a lot of controversy over the stipulations involved. However, these types of loans are less risky than many tend to think.
You may have heard some of these common myths surrounding car title loans. However, knowing the truth can help you to make a better lending decision.
The main fear surrounding a car title loan is that the borrower’s car will be repossessed. While this can happen if the borrower fails to repay, nearly every company on the market offers what is called a rollover.
A rollover is an extension to the length of the loan, giving the borrower more time to pay the lender back. This way, everyone wins and you can rest easy knowing your car isn’t going anywhere.
Just like any other loan, this will most likely cause an extra fee to be tacked on to the total repayment price. It’s good to know that these lenders will work with you, though, and that your car can remain in your possession even if you are unable to pay the total back in time.
The only thing the lender has possession of during your loan is the hard copy title of your vehicle. That means you can still drive your car to work, school, or anywhere else you need to go. Choosing a car title loan does not strip you of your mobility.
These lenders are not loan sharks looking to make a profit off your debt by selling your vehicle. While there are less than reputable companies out there, those worth borrowing from will take the time to explain everything in plain English with plenty of details outlining every term in the paperwork.
Professionals in this line of work are here to work with you because they benefit as much as you will from the loan. In cases where a car title loan is not the best option for an applicant, the lender is likely to steer them away from a debt trap while discussing other available options.
There is a common misconception that the length of a car title loan is 30 days, but that is rarely the case. Loan terms are discussed between the lender and the applicant so they can create a reasonable payment schedule.
While they are shorter than traditional bank loans, a longer term means more acquired interest. Paying off a smaller loan in a shorter amount of time not only saves you money but helps to increase your trustworthiness with other lenders at the same time.
If you find that you can’t pay off the full sum of the loan in the time allotted, there are always the rollovers mentioned above that can extend the time frame.
Unfortunately, there are lending companies out there who give the car title loan a bad name. In most cases, however, reputable lenders will not charge prepayment fees or include add-ons just to increase their revenue.
When choosing a company to receive a loan from you are encouraged to be aware of any fees associated with borrowing the funds. Your lender is required to disclose any additional costs involved in the loan process, but don’t be afraid to ask about them before sealing the deal. A reputable lender will be more than happy to discuss every aspect of the loan you are applying for in great detail, making your experience and theirs a positive one.
When you need funds in a hurry, the professionals at Windsor Quick Loans are here to help. Our experts are sensitive to your needs, working with you to create reasonable terms and clearly inform about every aspect of the borrowing process. With same day approval, you can walk out the door with a check in your hand as well as the keys to your car.