Auto Title Loans; 101
March 20, 2012
An auto title loan
is the type of loan, for which anyone who owns a car is eligible. They are offered by businesses that specialize in providing customers with an auto title loan only or, as part of the services offered by pawnshops or payday loan shops. They are easy to apply for, require little documentation and rarely call for a credit check but best of all, the turn-around time from application to approval for a loan is between 15 minutes to a half hour. You won't get an answer that fast from a bank. For most people who are looking into an auto title loan, they have a reason for needing cash fast.
What do people use an auto title loan for?
There is a perception that if a person needs to get an auto title loan or other fast loan that they have been irresponsible with their money and this is not the reason why most people get an auto title loan at all. A loan can get you money fast to take care of unexpected expenses that can come up for any number of reasons. If you have just lost your job, or maybe just found a job and need to cover the first few weeks' expenses until you get your pay check – then an auto title loan is for you.
For many people, tax time can hold some unpleasant surprises. If you wind up having to pay a tax bill that you don't have savings to cover, a quick auto title loan can help you. You can pay your taxes, avoid penalties and then rebuild your savings as you make the payments on the auto title loan.
Other people have even used an auto title loan to cover the costs of holidays or vacation. It may be easier for you to make small loan payments rather than spend what you have saved. You never want to be without that rainy day money you have worked so hard to tuck away and an auto title loan can help you meet unexpected expenses without removing the safety net of your savings.
Is getting an auto title loan risky?
An auto title loan is only as risky as you are careless in preparing to get one. If you take out a loan and do not have enough income coming in to cover your normal expenses plus the added loan payment, yes – an auto title loan is risky. If you think through what you can realistically afford in terms of repayment then there is no risk. An auto title loan is not a bailout for when you have spent too much money, it is a tool to help you stay financially solid and get through unexpected expenses without adding risk to your life.
Where can I go to get an auto title loan?
Search the Internet to find a local business that offers a plan. Make sure you check out reviews and comments from prior customers to get a feel for whether the company is reputable. Once you have found an auto title loan company, fill out their online form to start the process and then go in to their office with your documentation to secure your auto title loan.