In our last blog, we discussed the basics of payday loans. As a quick reminder, payday loans are a great way to bridge the gap between paychecks when you are short on cash and you still need to make payments. Sometimes those payments are due to emergencies like a car repair or a medical issue. Sometimes you are just a little bit short on making rent and you aren’t able to find the money elsewhere. Sometimes you have looked into other options, like obtaining a loan through a credit union or bank, but you’ve been shut down due to bad credit.
This is why payday loans are sometimes referred to as “bad credit loans.” They are also called cash advances, emergency cash loans, and a handful of other terms which are, for the most part, interchangeable. The long and the short of it is that payday lending has higher interest rates than other loan types, but on the other hand, you don’t need good credit to get a payday loan. You can eliminate the lengthy applications and costly rates that some other providers charge when you work with a high-quality payday lending company like Your Loan Depot.
All About Title Loans
Car title loans are all about taking advantage of the active equity in your vehicle. While car title loans have an inherent risk attached to them in terms of putting your vehicle up for collateral (handing over the title of your car, truck, SUV, RV, or other appropriate vehicle), the biggest benefit of title loans is that you can get much more cash than with other loan types.
With payday loans, you are usually looking at receiving a few hundred or thousand dollars to help tide you over and pay some bills. With title loans, you get the essential funding you need, with title loans services that let you borrow up to $10,000 according to your collateral value.
Is It Right For You?
Now that we’ve underscored the essentials of car title loans, you should have a working knowledge of what they are and how they are distinct from payday loans. Before we continue the discussion on car title loans, we want to remind our readers that car title loans are only sometimes the best option. It’s important to explore all options when faced with a financial emergency, and we can all agree that putting up a vehicle for collateral isn’t ideal in terms of a means of getting the emergency cash you need.
On the other hand, if it is a genuine emergency, then you just might have exhausted your other options. If your credit score is poor, if you’ve been denied by banks and credit unions alike, there is a solution here for you. We want to make sure our potential customers understand the fine print of the loan repayment plan. As the old saying goes, failing to prepare is preparing to fail. Hence, if you don’t have a solid plan as to how you will quickly repay the title loan, you should certainly be exploring other options. Otherwise, the interest on the loan might really set you back. And, considering the fact that you need a car title loan in the first place, your priority should be to make wise financial choices so you don’t ever need to think about title loans again!
So, long story short, do your homework, explore all options, and then come to Your Loan Depot in Texas if you are ready to apply for a payday or auto title loan.
How The Title Loan Process Works
One other important point about car title loans is somewhat obvious, but we need to make it clear anyway: you need to have equity in your car. That means, in most cases, you need to own the car flat-out. In other words, there can’t be another loan outstanding on the car.
After your car title loan lender does a check on you, the vehicle in question, and your financial status, you will either get approved for a loan or not. If you are approved and ready to move forward, you will give the lender (that’s us at Your Loan Depot!) the title to your car.
You should be able to continue driving your car, but be advised that sometimes lenders will want to install a GPS device on your car for tracking purposes (hey, we need to protect ourselves to some extent). Other lenders will make a copy of your keys so they can get in — but hopefully it doesn’t come to that. Both of these approaches make it easier for the lender to obtain the car if someone were to default on their loan.
Typically, loan terms last between a few weeks to a month or so. But, depending on the nature of your situation, they could be extended up to a year in some cases.
Again, car title loans are expensive. You can expect annual percentage rates in the range of 300 percent, which is another way of saying there’s an average of 25 percent charges per month, in interest rates alone. Put another way, if you borrow $1,000 with monthly interest, you’ll need to pay $1,250 after a month. Keep in mind that there are often other charges associated with these loans as well. So, they are expensive and can lead to a cycle of debt that is extremely difficult to break. But if you are in a pinch, it’s worth considering.
Consider Your Loan Depot
If you are in Texas and you’ve got your back up against the wall in terms of bills, Your Loan Depot is the best option for you if you decide to go the route of car title loans. We take the time to sit down with you and explain the fine print, the in’s and out’s of the loan agreement so that everyone is on the same page. Our goal is to empower you to make the best decision for you and yours — we aren’t in the business of rushing things over the line just to do more business.
At the same time, however, we understand that when people come to us, they need cash and they need it now! We have an expedient application process, and we will waste no time on our end, so that you can get the emergency funds you need to keep your head above water, financially speaking.
If you have any questions, don’t hesitate to reach out to us or walk through our doors at any one of our ten Texas payday lending locations. We’d love to hear from you and be a part of your journey toward financial security and well-being!