Car title loans differ from bank loans that use credit rating or income for approval. Car title loans are approved based on someone's equity in their car. In other words, you use a car as collateral to get Texas Approval for a car title loan in the state. Also known as online installment title loans, these loans are ideal for people who struggle with their credit rating. This isn't the only people who will get benefits from a title loan.
Despite the fact that these loans typically have a higher interest rate than bank loans, their benefits make up for the extra interest. The interest rate doesn't just go to nothing or thin air. The quick approval process, easy application process, and the fact that you don't need an inspection on the car makes these loans advantageous to even good credit borrowers sometimes. A lot of the hassle of obtaining a loan is in the lengthy applications and interviews. If you can't wait for a loan approval process that drags on for weeks or months, title loans are an easy solution.
How Can You Use A Car Title Loan?
Most questions about loan begin with what kind of restrictions are placed on the loan money. One of the first questions about title loans is what they can be used to buy. The great news is: Everything! Anything and everything that you can afford with the loan amount. Online installment title loans give you a certain amount of money as determined by the value of your car as collateral. Since your car title is on the line, the money you receive from one of these loans can be used for anything you like.
Use the money for:
- Debt consolidation
- Emergency spending money on utility bills
- A late payment on a mortgage
- Early vacation
... and the list goes on and on. Whatever you want to spend your title loan money on is up to you. It's YOUR money, as guaranteed by the value of your car. If you need online installment title loans to help you afford something either necessary or frivolous, the answer is that you can spend the money on anything of value, whether necessary (like a mortgage payment) or unnecessary (like a vacation for the family). It's all up to the borrower.
How Easy Is It To Apply?
Since you can obtain a car title loan if you use an online site, you have no store visit title loans, and applying is as easy as typing a few basic answers into an application form online. That's the magic of online installment title loans is that they are incredibly easy to apply for. Loan specialists can help you during the process. Important questions to ask a loan agent include:
- What are the repayment terms
- What loan amount have you qualified for
- How long do you have to repay the loan before repossession of your car
- When you will receive your money
This is a short checklist but covers all the major questions most people have about car title loans. A loan specialist should be friendly, professional, and most of all, helpful. If you have questions, they should have the answers. Texas loan specialists will know the important guidelines for title loans, as set forth by the Texas Fair Lending Alliance. These guidelines protect both lenders and borrowers from unfair arrangements that can end up in a court room. Reputable car title loan lenders are going to know all of the important state statutes about title loans and follow them to the letter. Because of the higher interest rates, these loans are expected to be paid off in a short amount of time so that too much interest doesn't accrue. This helps lenders because they get their money back in a short amount of time and can continue giving out loans. It helps borrowers because it keeps a large amount of interest from building and giving them trouble repaying the loan.
Get great repayment terms
A repayment plan should be realistic. Flexible agencies will have more than one set in stone repayment plan on title loans. They want their borrowers to take a realistic look at their budget and then make a good decision about which terms to select. Some people will pay a title loan off in as little as a month or two. Other may need up to six months. Keep in mind that Texas law prevents you from renewing a title loan more than 5 times, so you only have about six months to repay. If you can't, it's not a good idea to take out a title loan until your finances allow for a 6 month repayment window.
Friendly repayment terms
A few common charactertistics of fair repayment terms include:
- 1. A realistic term length for your budget
- A fair amount of interest, even for a title loan
- Flexible arrangements in case of unforeseen emergencies
A great title loan lender will have a loan specialist work with you and help you determine the best repayment arrangement for you. While repaying sooner always means you've paid less interest on the loan, it's not always realistic for people who are struggling financially.
Taking out an online installment loan today
Since you don't have to go into a loan store to apply for one of these loans, you can have them in as little as today. Don't wait another day in your current financial situation. As long as you do business with a reputable title loan agency, you can look forward to a very pleasant experience. They will let you fill out the form online, explain your estimate to you and how much money you will receive, discuss repayment terms and how long you have to repay the loan.
Once you're all set and have all the information you need, you can have money in your account by the next day. From there, you can spend your title loan on:
- Debt consolidation
- Unpaid bills
- Extra house payment
- New electronics
Many people will consolidate their loans... after a short shopping spree. Yes, you can spend your title loan on something frivolous like a new TV. Few people don't appreciate getting a few extra dollars to spend with a title loan. While you can definitely treat yourself, remember that this is not free money. You're going to pay all of it back plus pay interest over the repayment term. Splurge a little but for the most part, people usually use title loans for necessary utility bills, house payments, and sometimes debt consolidation of loans that have huge interest rates.
Used responsibly, a title loan will help you through an emergency financial crisis. Repay the amount that you owe in the amount of time you say you will and you'll be pleasantly surprised at how helpful these types of loans are. Once you've repaid a title loan, you can take out another one later on.