Some people have come to know car title loans as having iniquitous and unconscionable interest rates. There are several articles, reviews or reports that have given people the wrong impression about this loan. Although it cannot be denied that they are certain car title loaning firms with such kinds of interest rates, not all loaning firms are exercising such act. In truth and in fact, car title loans have become helpful to people. These loans have given them the opportunity to meet their needs, make the necessary payments and manage their current financial drawbacks. More so, they have been recognized by the government.
To begin with, car title loans may be considered a secured loan because it requires a pledge. In obtaining such loans, a borrower is required to give the title of his or her car as collateral. While the title of the car will remain in the possession of the lender until it has been paid off, the car will only be used as basis for the amount of money to be acquired by the borrower. The amount of money to be received will depend on the car’s value. Upon determination of the value of the car and agreement on the money to be acquired, the borrower gets to keep his or her car. Borrowers can instantly get the money they borrowed as soon as they have been approved. Loan approvals may be done in 30 minutes or in an hour. Hence, you can get hold of your money as soon as possible.
The only time the borrower can lose his car is when he or she defaults from payment. Losing your car as the consequence of the non-payment of the loan is one of the reasons why it is important to repay the loan. In repaying the loan, lending firms allow the client to pick the term of payment. This way, you would be able to meet your payments in your own terms. It would also be easier for you to repay the loan.
As to the interest rate of car title loans, rates are based on local, state and federal laws. Local, State and Federal governments have the authority to regulate these rates as well. Due to this, it is important to note that car title loaning firms are in strict adherence to these laws and regulations. They are well-aware of these circumstances. It is, therefore, important for people to choose the most reputable lending firm which would give them the best and sincere assistance.
In setting the record straight, car title loans are good financial alternatives to people. Just like other financial institutions, interest rates are imposed on such loans but are in strict adherence to the laws of the land. These are secured loans recognized by the government and are legal, legitimate and safe. They offer quick solutions to your problems in times of financial crisis. If you are in need of financial help and is looking for the easiest and fastest way, avail car title loans!