Has your auto mechanic just given you the bad news that you need to get a new transmission installed or get your engine rebuilt? The job is going to cost you thousands of dollars, but you have bad credit so you cannot get traditional funding. You have very few options. You can’t rent a car because you don’t have the cash, but you still need your car so you can get to work.
Well, you don’t have to panic anymore. If you’re strapped for cash and your auto mechanic refuses your credit, your best option to get quick cash is to apply for a car title loan. When major auto repairs surprise you and leave you stranded without money, a car title loan can provide the money need to get your car fixed.
Fund Auto Repairs with Car Title Loans
When major auto repairs leave you stranded, a vehicle title loan can provide the money needed to get your car fixed. Apply for a title loan, using your auto title, also called a pink slip, as collateral to get you a high-limit loan quickly. If you find yourself in a situation where you need to get your vehicle repaired in order to get to work, online lending companies in Arizona and other states can make it possible to have cash in hand in just a few hours.
If you don’t have the cash you need or you have bad credit you cannot get a low-interest loan from a bank, you can use your automobile as collateral and providing you auto title. Loans, borrowers recommend, are ones that do not charge to repay the debt early. Once you get your vehicle repaired, you can continue working to earn money to pay off the debt.
What You Need To Know About Car Title Loans
A car title loan is a secured loan that has a higher rate than interest than bank loans. The higher charge is because they are given to subprime borrowers, usually those who have bad credit or no credit, and are considered a risky investment for the lender. In the event that you default on your loan payments, the lender has to recover the cost by repossessing and selling your vehicle.
However secured financial debts are always a better option than unsecured debts that charge exorbitant interest rates and come with extra charges. When using the car title as collateral, it’s important to make payments on time and in full. You don’t want to default on your payments and end up losing your vehicle.
When deciding on the type of car title loan, it’s best to choose the shortest term you can afford, in order to pay the least amount of interest. Make sure you choose a lender that charges no prepayment penalties, which allows you to pay off the debt earlier, if you want to avoid additional interest charges.
Make sure you choose a reputable lender, not one that can bury you further into debt. If you intend to take a long-term loan, ask for flexible payment terms and competitive interest rates.