Advantages to look forward:
Quick service: Most probably, everyone who opts for a car title loan puts it on priority list because of this reason. When banks and other conventional ways take long time to approve a loan and a borrower don’t left with a choice but to do infinite time consuming formalities auto title loan offers fast approval and faster transaction of money. With car title loan one doesn’t wait in the time of emergency.
Bad credit friendly: Banks can reject a loan approval on basis of a single stain on your credit history. Therefore, if your credit record is not perfect you may have no hope of getting a bank loan. Title loans are ideal rather say only solution of this situation. Here companies loan you considering your car title. Your credit history, no matter how bad it is, does not bother your eligibility factor for a car title loan.
Easy to quit: If you think about not continuing the loan, you can just repay the money you have taken till date and the deal is canceled. If you end loan and repay it within a day you don’t even have to give any interest.
Threats to keep in mind :
High interest rate: Auto equity loans or car title loans come with much higher interest rate than traditional bank loans. Its APR can be as high as 36%. If you default on the payment that can lead you to a rollover period with an even higher interest rate.
Short time period: These loans are short term loans where the payback time is really short. Possibilities are you get only 30days for pay it off.
You risk your car: With a car title loan you may enjoy driving in the duration of loan but if you fail to repay the loan in time your lender can repossess the car.
Tips of getting benefited from the loan eliminating the threat:
Keep in mind Auto equity loans Albuquerqueis a short-term loan, use it for emergency only. Don’t borrow it with a long term purpose.
Make sure you only borrow the amount you need. In this, you can get big amounts, bigger than conventional loans but do not burden yourself with unnecessary loan. It might risk your car.
Try to repay the loan within the predetermined schedule. Delay in repayment will only increase the payback amount for you.
Select your lender carefully. Always check the market reputation of the company and listen what their old customers have to say about them. Consult their customer service and get all your queries cleared first. If you are fully satisfied, they only proceed in the process.
Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/448970
Article Added on Monday, April 28, 2014
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