If you are looking for quick cash and have limited resources for collateral or bad credit, you may be thinking about a payday loan. Although this type of loan is aggressively advertised, they are very expensive, and if you own a car, there is no need to contemplate borrowing in this manner. Anyone who has their car or truck paid for has an asset that can be used for a loan. An auto title loan Fort Worth lender can get you the money you need just as quickly as a payday lender, and they can do so at less cost and with better terms.
What Is a Texas Title Loan?
This type of loan is called a title loan and has many advantages over any type of payday lending. There really is no comparison, so it is much easier to simply explain the advantages of a title loan. To begin with, this type of loan is much cheaper. A payday loan will usually be quoted in terms of fees. They will indicate the money you have to pay back.
For example, a lender may charge $25 for every hundred dollars that is borrowed. If you take the time to calculate the annual interest rate, you will be in for a shock. Typically, it will be several hundred percentage points. A title loan is much lower than this.
A title loan can also be financed with installment payments. This is rare will the payday loan. They are a cash advance in the most strict form of the expression. You borrow a certain amount of money to hold you over to your next paycheck, then pay back the loan in one lump sum. This includes the interest. A borrower can run into difficulties paying back a loan with one payment in a short frame of time. It is easier to pay back a title loan. You have more time to pay the loan back. and the payments are low.
What About My Credit Rating?
With regard to credit, a title loan can be approved without a good credit rating. You don’t even need credit to get a title loan. You only need to have the title and a means to pay back the loan. Seldom will an individual’s credit be checked for this type of loan, so even if you haven’t looked at your credit recently, it will not matter. You can go ahead and apply for a title loan.
This is true if you have been turned down for loans in the past. From your initial application to the time you are approved, you will be surprised how easy the entire process is.
When you are approved for this type of loan, you will be leaving the title in the hands of the lender. What this means is that you can drive your vehicle to work, around town, or wherever you want. When your loan is paid off, the lender will give back the title to your vehicle, and the transaction is over. A title loan lender will want to inspect your vehicle. The amount of money you can borrow against your car is dependent upon the value of the car. The value of the car is determined by the year, the model, the mileage on the car and the overall condition.