Online title loans are a convenient way to get quick cash when needed. The fact that you need to give up the title to your car to get that cash may cause concern for some people. As with most payday loans or installment loans, there are going to be pros and cons to each type of loan. With car title loans you experience many of the pros when you get the cash. For example, you can keep driving your car or motorcycle while you have financing. Additionally, you can borrow a good amount of money with the average title loan. Often up to $30,000 if your vehicle has enough blue book value.
Another benefit of using a vehicle as collateral is when it comes to financing, you can often borrow more cash by tapping into your RV or motorcycle equity. By doing this you can stretch out a car title loan for much longer than a payday loan or even a cash advance loan. We’ll get into these auto equity loan alternatives later. These are some of the positive aspects of online financing. There are negative parts of a title loan as well and we’ll get into those in the next paragraph.
Consider Title Loan Alternatives Before You Take Out The Loan
Car title loans online, you get to keep driving your car but you will run into big trouble if you fall behind on the monthly payments. The contract you signed will often include some type of language about financial terms. We see similar terms and contract language with payday lenders and home equity firms. This may let the lender repossess your vehicle if you fall behind on loans with no credit. Another drawback is that you will pay a lot of money in interest and finance charges with each monthly payment. This site has a database of lenders that rates and analyzes different pink slip lenders.
Most car title loan companies are rated based on their financial terms and standing in the industry. They have the option in a place where you can pay off your loan early with no penalty. If that option is where you want to take that option! The amount of money you’ll save by paying off your title loan early is huge and can result in hundreds of dollars more in your pocket each month. We discuss payday and installment loans when discussing alternatives to vehicle equity financing. These are effective ways to address short term cash issues by applying for an RV title loan. They don’t do much if you need 5 or 10 thousand to pay medical bills. Also, most bank and installment lenders will ensure you have a good credit rating to be approved for a loan. Good luck getting a bank loan if you don’t have good credit or if you have past due bills!
Boat And Motorcycle Title Loans
Some alternatives to car title loans may be a variation of this type of financing itself! For example, did you know you can use your motorcycle or boat title to secure a title loan without a credit check? That’s right, most of the same auto title lenders will give you cash in exchange for your boat title or motorcycle title. Some of these companies won’t even need an inspection or credit check and the approval process for a loan with your RV or motorcycle is sometimes quicker than a typical vehicle equity loan.
As long as the borrower has decent equity and can pay back the car title loan, they should be fine. One benefit of using a motorcycle or boat title is the fact that you are not using this item as your primary vehicle. So, if you find yourself in a situation where you can’t make the monthly payment you won’t run the risk of losing your car.
Evaluate the different options and alternatives that come with each title lending offer
Another thing to remember about motorcycle and boat title loans is that many lenders won’t give you nearly what you think your item is worth. We’ve heard stories where someone went to get a loan for their motorcycle but only got 20% of the item’s value. The lender will say they need to do this to ensure a profit. This is like what payday loans and banks do when evaluating loan profits.
Evaluate different sites that compare interest rates for all types of online loans. If you default, you’ll want to do all you can to shop around and find the best title lender. Another alternative is to forget about even using your vehicle’s pink slip to get a loan. Collateral loans are easy to get and are becoming more common. An applicant should try conventional methods of getting a payday loan before resorting to a car title loan.