Sunday 2 March 2014

Car Title Loans

Sometimes in emergency situation we need cash immediately. But what if you don’t have money in bank account what if you are unable to use your credit card. No problem Car title loan is there for your help. This is the short term loan and this time period is near about one month or less than one month and within this time period the borrower has to return the loan amount. For car title loan the title of car or some other vehicle on which borrower is going to take the loan is used as collateral. But there is high risk related to this loan and that is this if borrower is unable to return the loan amount within the decided period of time then lender who is providing the loan amount can take the ownership of that vehicle and can sell it. If you are thinking to take this kind of loan then keep in mind the borrower who is taking loan he would has his own car.

In case of car title loan the loan amount which borrower want to take on his car is totally a depend upon the car on which he/she is going to take the loan. There is not a specific limit like the credit card or some other loans like payday loan. One of my friends has taken this kind of loan in last month. In last month he got the utility bill with very large amount because of her sister’s marriage.

And because of marriage he spent almost all of his money and now he was unable to pay the bill. So in this emergency situation he decided to take the loan on his car. And because he was the owner of the car, so without facing any kind of trouble he took the loan. And on the next day he paid his utility bill. One thing related to car title loan is interest rate. The interest rate related to the car title loan is quite high and if you will calculate this interest rate annually then you will find it will be near about 300 percent.

Car title loan is only the way using which you can get cash immediately and the amount that you can take using car title loan is much large as compare to other short term loan.

Thanks for read my article hope you like my article.

To read more about Car Title Loans Just do Click on the given link in this line.

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