How to Pay Off a Title Loan Early

A title loan is a nice way to access quick cash to solve some pressing problems. The loan is simple to process. It can take a couple of hours from application to the time you finally receive the loan. However, for some people, it is repaying the loan that is a bit problematic. Most time it may be because of other loans that the borrower has pending. This guide will help you find ways to pay off your car title loan in no time.

Tighten Up

The months in which you are required to repay your loan will need some tough budgeting if you are to pay off the loan early. It is likely to include some sacrifices in the area of expenses. Always make sure you understand ahead of time what your situation will look like under the terms of the title loan contract and prepare for it. Have it at the back of your mind that, it is temporary and will be paid off faster than a standard loan.

Talk to your lender

If you encounter any financial difficulty during the course of your repayment period, call your lender and speak with them. They will be glad to work with you to get the loan paid off as soon as possible because it will be in the best interest of everyone. 




Be honest with your lender because they are used to every possible situation and have equally dealt with all kinds of unexpected contingencies. (This only works with reputable lenders. If you’re dealing with a fox, don’t expect any help at all. Be wise and choose a high-rated lender from the start.

Consolidate

If you are certain, under your circumstances, you will not be able to pay off your car title loan within the required timeframe; you may consider consolidating your debt into one payment. Consolidation loans will pay for your title loan and allow you to keep your vehicle. These kinds of loans take much longer time to pay off and may come with additional interest fees, but it will help you not to default on your loan.

Do not take the full amount

It may look tempting to take the full amount on offer, but if you can, just take the amount you need, rather than the amount you would like to have. Taking a lesser amount will make the repayment process easier on your wallet.

Downgrade

If you cannot find any other means to pay off your car title loan, you may consider selling the vehicle. Selling the vehicle for the full market value would allow you pay off the loan and may as well leave you with some funds to buy a cheaper car. Do not get discouraged when this happens, the bottom line is your loan is paid off and you are free to save up to buy a better vehicle in the future.

What's the Difference Between a Bank Loan and a Title Loan?

Many people experience a situation in which they need cash to make a purchase, but they do not have enough on hand. 

A bank loan or title loan can be used to generate an influx of cash for a situation such as a home repair or payment of a medical bill. 

There are some important differences between bank loans and title loans that you should understand before signing your name on the dotted line.

Bank Loan Requirements

Bank loans are provided by a lending institution that must operate under the terms of federal laws for interest rates and other loan terms. 

In order to get a bank loan, you may have to provide proof of your ability to repay the loan. This would come from copies of your pay stubs. If your income is low, you may need to have a co-signer. 

The bank will also check your credit score. A low credit score can mean a high interest rate.

Prerequisites for Bank Loans

Banks will scrutinize your finances and calculate your income to debt ratio before agreeing to a loan. 

The bank loan can be secured, such as with a mortgage. In a secured loan like a mortgage, the deed to your house would go to the bank if you fail to pay. In an unsecured loan, the bank is taking a gamble on your personal finances. 

The interest rate for an unsecured bank loan is usually higher than the interest for a secured loan.

Title Loan Terms

The terms of a title loan are different from a bank loan. With a title loan, the title to a piece of property owned by you secures the cash that is loaned to you. 

For example, you could put up the title of your car. If you fail to repay the loan, the lender gets the title of your vehicle. To get a title loan, you must own the property free and clear. 

Some companies, like American Cash Advance and Title Loan, know that the property cannot have any liens on it. Title loans also come with interest fees, which can be tied to your credit score.

Before taking out a loan, be sure to read all of the fine print. You will need to know the terms of the loan, such as payment schedules and what could happen if you miss even one payment. 

Understanding how these loans work will help you to make the best financial choice for your situation.

5 Things to Consider Before Applying for a Car Title Loan

Car Title Loan Reflection (Photo credit: Jeremy Brooks)

While your car may not precisely be deemed an asset because of how quickly it loses value, it does have some amount of value as collateral, so long as it's in good, running condition. And this means you can use it to secure a car title loan, whereby you can get the money you need (or a portion of it, at least) based on the estimated value of your vehicle, amongst other criteria. 

Of course, you will have to hold your car title (as in, own it outright), you'll probably need full coverage insurance, you'll need to provide proof of employment, and you might even have to offer references (and deal with the embarrassment of having a car title lender calling your family and friends). 

But once you've filled out a mound of paperwork you're all set, supposing you pass the background checks. The thing is, unless you're really desperate for cash and you'll find yourself in dire straits without it, a car title loan may not be your best option due to the astronomical interest rates you'll end up paying and the fact that your car will be seized should you fail to pay in a timely manner. 

Here are just a few things you'll want to consider before you sign on the dotted line.

1. Why you want the money. This is important. If you are so strapped for cash that you're going to, say, lose your home if you're unable to pay the mortgage, then virtually trading in your car for your house (at least temporarily) could allow you to stay in your home until your ship comes in. But if you're using the money to take a vacation, buy holiday gifts, or otherwise spend on things you simply don't need, you should check yourself and take a long, hard look at your choices. Living beyond your means is going to catch up to you eventually, and the result, if you get a car title loan for unnecessary expenditures, could be that you end up losing your car.

2. Your credit score. Car title loans are generally reserved for those who don't have the option of opening a home equity line, taking out a personal loan from the bank, or otherwise securing the funds they need. Unfortunately, the fact that you've exhausted other options doesn't mean you're going to get a car title loan without a decent credit rating. If you pose too great a risk where repayment is concerned, you're simply not going to qualify, even with your car as collateral.

3. The value of your car. If your car is more than a few years old, damaged, or undesirable in some way that has depreciated the value, your chances of getting a car title loan are probably pretty slim. The main thing required for this type of collateral is value, and this is generally based on the Kelley Blue Book estimate, as well as a visual inspection by the lender. And don't expect to get more than half the agreed-upon value of your car when you take out this type of loan (as it will continue to depreciate while you pay off the amount borrowed).

4. Alternative options. There are all kinds of alternatives to taking out a car title loan, such as borrowing from family members, opening a home equity line, selling valuables, or perhaps even applying for a personal loan. So before you put your car up as collateral and agree to pay an exorbitant interest rate, try absolutely every other avenue available to you.

5. Comparison shopping. If you've decided that a car title loan is the only feasible option for getting the money you desperately need, it's important to comparison shop in order to ensure you get the most money, the lowest interest rate, and the best terms overall. In case you didn't know, there are many lenders to choose from, and you can get a title loan online, as well. You're the one who will have to pay, so make sure you do your homework and find the best possible deal.

Car Title Loans: Fast Cash When You are on a Fixed Income

Whether retirement is just around the corner or already here, you might be thinking about the financial responsibilities that lie ahead when you begin getting a fixed monthly income. While you’ve saved what you could throughout the years and did everything possible to prepare for this time in your life, the reality of the economy these days makes it less likely that you will see all of that in the years to come.

While you will surely get enough each month to cover your basic expenses and bills, what are you to do if faced with an unforeseen emergency, or if you want to take a spontaneous trip to see family or friends? Luckily there are solutions for finding cash. Title loans are an easy way to get money quickly, and are helpful when needed unexpectedly. Most lenders, such as TitleMax and others, make the whole thing easy and simple so that you are not drug through a muddy process that is burdensome and tiring. 

An Easy Approval Process

The approval process for title loans is relatively quick. Since there is no credit check for a title loan, you can be approved in less than an hour in most cases. Once you are approved, an appraiser will come out to assess the value of your car to determine the amount of the loan that will be approved. From there, you simply have to work out the repayment terms with the lender and the money is yours. More often than not, you will see the money in your hand the very same day that you applied for the loan. How could you possibly go wrong with that?

Benefits of a Title Loan

There are many advantages of title loans over traditional loans. For one, you get money fast. In an emergency or unforeseen event, it is handy to have extra cash to ensure that nothing goes awry. Additionally, a title loan is used against the value of your car that you already own. While repaying the loan, you can still use the car. And once it is paid off in full (on time), you get your title back. This allows you to get money for other uses, while still retaining possession of your car. Finally, title loans are short term loans, so you only have to worry about making payments for a short while.

As you near retirement, there are bigger fish to fry than money and social security. If you plan it out right, you can enjoy your time and have the money to do so without worry. Title loans are an easy option if you need something quickly. They are helpful loans, so long as you make timely payments and do not fail to pay back the loan in the allotted time. Plan ahead and make sure this is the right choice for you. There is some risk involved, like any loan, but once it is paid in full, you can go back to living as peacefully as you were before.

Image source: nbc29.com

Sure Ways on How to Save Thousands from Your Car Loan

Buying a new car is not as easy as buying new pair of pants. You have to save up, and investing in a bad car is much more severe than investing in a bad pair of pants. Thus, you should take time to find the best deal present in the market because the money you save will be well worth your time.

There are several factors to look into when buying a new car. According to Forbes, there are at least five reasons why buying a new car is a good idea. Low interest rates, high trade-in values, generous leasing deals, competitive pricing, and improved products are just some of the benefits, considering the current consumers’ market and financing.

The idea of buying a new car can easily overwhelm or intimidate some people because of the expensive price tag. Although this is quite natural in the auto market, consumers should not be anxious in buying a new vehicle because they can always create ways that could help them lessen their financial obligations.

According to one aggregator of financial rate information, consumers who want to get their hands on a new car can have a refreshing experience by using the internet for finding the best car deals applicable to the consumers’ financial situation and goals. Consumers can negotiate price and financing with few clicks on their computer or few swipes and touches on their smart phone or tablet. Since most of internet department salespeople get their pay and bonuses through volume rather than commissions, they can cut the best price to move cars for the benefit of the consumer. By doing this, the consumer gets savings anywhere between $1,000 and $2,000.

Consumers can also save on their auto purchase by taking advantage of the tight competition in the car industry. If you have decided what model and brand to buy, you can start communicating with different car dealers to get price quotes, while letting them know that you are also contacting other dealers. By doing this, you are making the competition work to your advantage. Dealers will offer you their best prices.

Consumers who are planning to buy a new car should know beforehand the financial obligations they will encounter when the purchase is made. Thus, it is important to have a solid grasp on monthly payments in order to set the budget straight and to avoid unnecessary expenses along the way. Consumers can also turn to an auto payment calculator to know how much they have to pay for monthly payments and the purchase price. Also, it is wise to know how much interest you can save by having a higher monthly loan payment. There are several websites that offer payoff calculators, like the one featured at www.carloancalculator.org/payoff.php. All these calculators have one aim: to help consumers save in their car purchase.

Saving up for a new vehicle can be a complex move on the part of inexperienced consumers, but by following certain steps and procedures, they will have the opportunity to save more and have a good car purchase experience.

Get Help in a Financial Crisis with a Car Title Loan

Car title loans are well recognized as a source of help when we find themselves in financial distress. Though they may not be the best option, observing certain precautions can make them a good option. Sometimes they are the only option available to an individual. 

Why Car Title Loans Are a Good Option 

Car title loans San Diego locations make a good option for a number of reasons. These include: 

• Ease of obtaining 
• No credit check required 
• Quick to get 
• May be larger loans 

These loans are easy to get. You just have to fill out a simple, short application. There is no credit check, and you get your money in just a few minutes. This means if you have a financial emergency, you can get help with no waiting. These loans are often larger that could be obtained otherwise, since your car will be used as collateral. 

Some Precautions to Note 

Though car title loans San Diego locations are convenient and easy to obtain, there are a few precautions of which you should be aware. One precaution is to make sure the business you are considering is licensed and follows applicable rule and regulations. You don’t want to have to pay more interest that is legally allowed, for example. 

You should also be careful to not borrow more than you can reasonably pay back, as your car is at stake. If you can’t pay the loan back according to agreement, you will lose your vehicle. This can be devastating and end up costing you more financially than you are willing to risk. 

Another precaution involves recognizing your money management skills. If you are always at risk financially, you may have difficulty managing your money. This means you might not be able to manage well enough to be able to pay off this additional loan. Also, if you income is too low, you may not be able to repay. In those cases, you should avoid the additional financial burden. 

Using Car Title Loans Wisely 

It is important to use caution in using car title loans San Diego areas to alleviate financial troubles. You should be aware of the amount of money you have to repay. Also, be aware of any difficulties that might keep you from repaying, such as having no budget, too low of an income, and potential further emergencies that an prevent following the terms of the loan. 

Understand that car title loans are designed as a relief for a temporary financial emergency. They are not meant to be a major and regular source of income. The cost of using them just adds an additional burden to an already stressed financial situation. They do help when needed, but should be used cautiously. 

When Car Title Loans Might Not Be Advisable 

There are times when it might not be a good idea to rely on a car title. Though car title loans San Diego areas can be a good option when you have a financial emergency, there are a few reasons to be careful about using them. 

One precaution is to be careful about risking your vehicle if you depend on it for your livelihood. There is always the chance that you will not be able to pay the loan back and will lose ownership of your car, since you offer the title as collateral. 

Author Bio 
Dean Wilson writes about personal financial issues. She writes about car title loans San Diego in particular. Her tips help consumers make the best decisions about personal financial issues. She is knowledgeable about many areas of financial health for the consumer and writes frequently about them.

Get Emergency Cash with a Car Title Loan

Car Title Loan Reflection (Photo credit: Jeremy Brooks)

Unexpected expenses occur for most people at some time in their lives. While it is certainly the best policy to have a reserve of available funds in a savings account, a depressed economy and job loss can make that difficult. 

These circumstances may also result in a person losing their positive credit score, so a cash loan is not usually available when unexpected expenses arise. Fortunately, vehicle registration loans can provide the answer to this dilemma. 

LoanMart is a company that offers quick cash for loans commonly known as title loans. If you find yourself in immediate need of funds, you can access the equity in your vehicle through an automobile title loan. A vehicle title loan is different from a payday loan in that it is a long term loan. 

You will be required to make monthly payments just as if your car were financed. LoanMart will be listed as the lienholder on your title until your loan is completely paid off. LoanMart streamlines the approval of your loan, so your cash is likely available within 24 hours. 

Although LoanMart will do an internal check on your credit, the primary considerations are the condition of your vehicle and its value. You can apply online to get your documentation started. When you arrive at one of their convenient locations, a LoanMark representative will go over your documents with you and then inspect your vehicle. Your loan should be finalized within about 15 minutes, and you can leave with your check.

Advantages and Disadvantages of Auto Title Loans

Loans (Photo credit: zingbot)

Auto or car title loans have now become a popular way to get a car quickly. They are being widely used, as they bring some real benefits. However, like any cash loan, car title loans imply certain risks. Here are the main benefits and drawbacks of car title loans. 

Benefits: 

1. The main benefit of auto title loans is that they allow borrowers to quickly get the money for purchasing a car. It usually takes a day or two for these loans to be processed. This is because auto title loans comprise a simple process involving a lender examining your car in order to make sure it is worth the amount you’d want to borrow. 

2. Anyone who has a car can obtain an auto title loan. That is because there are no credit score verifications involved in the process. As a rule, a lender will give you a secured loan, meaning that this loan is based on some collateral that you will have to provide. Unsecured car loans involve no collaterals or guarantors. However, in this case the given money will have to be paid back with interests. As practice shows, auto title loans have rather high approval rates, as there is literally no risk for the lenders. This type of loans is also ideal in case you have a bad credit rating. Banks will most likely reject your application if you need money to cover your current debts on payday loans, for instance, or bills. But the car title loan will bring you what you need if you have a car. 

3. While you have your loan out, you will be able to keep your car and drive it. You will have to give the pair of keys along with your title to the lender, but you will still be able to drive. Your lifestyle will remain the same, and you will get your money. 

Drawbacks: 

1. Auto title loans are delivered for a short period of time, usually around a month. The interest rates are low at the beginning, but they will rise to higher levels for every additional month that you need extended. So, if you are borrowing a considerable amount, you may find it difficult to repay in the short period. In this case you may end up paying more than you have expected. 

2. Like any secured loan, car loan implies the risk of losing your pledged assets. The lender will have the right to take your vehicle in case you fail to pay the loan back. The lending company will naturally sell it to make up for the lost money. However, if the sale price is less than the amount you owe, you will be in charge of paying the difference. In addition, if your lender sells the car and makes more than your debt, he will keep that as well. 

3. The attractiveness associated with quick and easy cash can make you take ill-considered decisions. There are always some risks waiting for the borrower which may lead to losing the car. So, make sure you know all the risks involved in your auto loan before your pledge your means of transportation as collateral. 

Finally, auto loans are good ways of getting a vehicle fast, provided that you are able to pay them back in due time. So, it is highly recommended to carefully weigh all the pros and cons before applying to these services.