The Positive Side Of Title Loans

August 19, 2011

Getting the Money you Need

There’s no question that the economy is struggling, and many people are feeling the strain of financial difficulties. Consequently, people have had to make significant sacrifices and give up the way they had previously lived their lives. Because this ongoing strain has stretched peoples finances to the limit, when unexpected financial needs suddenly arise, many people are finding themselves needing to gain access to some quick cash.  Although some are fortunate enough to have friends or family members to borrow from, others are not and they have no choice but to seek a loan from outside sources.

But the other result of hard times has been that, for many good people, their credit has ended up suffering in the process as well, making it difficult (if not impossible) to get a loan from a more conventional credit based lender such as bank.  Other borrowing options such as car title loans have become popular replacements for traditional credit based loans since car title loans typically don’t require a credit check and are easier to apply for and get approved. and they also are generally approved much faster than loans from banks and other credit based lenders.  While it is surely an incredibly convenient option that has been an absolute life saver for many, as always, additional convenience comes with an additional cost.  The cost to the title lender for providing the public with fast loans regardless of credit is a much higher rate of defaults than is experienced by the credit based lenders.  Title lenders recoup that cost by charging significantly higher interest rates than the credit based lenders.  Without that context and background information, those higher rates have sometimes been viewed harshly by those who lack the understanding of that bigger picture.  However, based on the high rate of acceptance and demand for title loans among many members of the public, the reality is that when one is in a pinch and has to come up with cash quickly, many have made the decision to pay the price go forward with the best option that is actually available to them when they need it the most.  Although the interest rate percentages are high, these loans typically have no penalty for early payment or payoff, so in reality, borrowers can often dramatically reduce the dollar amount of the interest actually paid, by paying off early.

Car Title Loans Help when Times are Hard

The reasons are why title loans have become such a popular option for so many, are just as plentiful and varied as the thousands of people from all walks of life who have used one in their time of need.  Title loans have helped all kinds of people in dealing all kinds of pressing situations when they don’t have friends or family to turn to help them out of a financial jam such as the need pay for family, personal or business urgencies and emergencies of all kinds including: the high costs of major auto repairs, surgeries, funerals, legal fees, tuition, payroll, taxes, licenses or anything else under the sun!

Of course, many people’s next thought is to first attempt to take out a traditional loan from a bank or other lending source, or to borrow against the equity in their home if they own one.  But, many people don’t have this option, because borrowing from a bank or other credit based lender generally means that someone has to have decent credit.  Ironically, for many people, the time of their greatest need for funds comes right on the heels of some unexpected event has already caused damage to their credit.

For those fortunate souls who have a good credit, documented income and own a home that still has some equity left in it, a bank loan is a very viable option.  But for the great masses of others, a title loan may be the best option for a loan that is actually obtainable.

In sum, having easy access to fast cash, just when you need it the most, is exactly why a title loan may actually be your best option available for a short-term solution to a temporary problem.