These days, there are a lot of folks with poor credit ratings. When they try to get a consumer loan, they end up hitting roadblock after roadblock because lenders have become more cautious on who can qualify for one of their loans.
Alternative Ways of Borrowing Money
Some lending institutions will grant installment loans with high-interest rates to borrowers who have blemishes on their credit report. But payments on these loans are not affordable for most people.
Payday lenders also loan money to people, but with an interest rate of 300 percent, additional loan costs and only two weeks to repay the loan. This is not a long-term borrowing option.
Auto Title Loans
This is the best alternative, and it far exceeds the other alternative borrowing methods. VIP Finance will loan money to mid-cities, Texas residents at an interest rate of only 6 percent.
The amount that people can borrow depends upon the value of their vehicle. Unlike other auto title lenders, VIP will loan a borrower the entire value of his or her car.
How to Get a Title Loan
First, a potential borrower needs to go to the VIP Finance location and bring his or her car’s documentation.
This will include the vehicle to be inspected, the car’s title (free from loans and liens), income verification and residence verification.
In approximately 30 minutes, the borrower will leave with the loan funds in hand.
Retired people and people collecting disability payments are also eligible to take out a loan from VIP Finance as long as they have proof of income.
VIP Lending will also loan money on motorcycles, recreation vehicles, and industrial equipment.
Weekly Payments and Loan Terms
The payment on a VIP loan is a minimum of $30.00 weekly. The loan can be stretched out for as long as two years, and money can even be borrowed on the amount repaid on the auto title loan.
When a loan is taken out from VIP Finance, the borrower is offered a protection plan that will repay the auto title loan in the event the car is wrecked during the course of the loan.
The borrower of a VIP loan will be able to see the principal balance of his or her loan go down every time a payment is made. This is so much better than paying minimum payments (interest only) on a credit card and never seeing the balance go down.
Lowest Amount Paid
Borrowers from VIP finance are always surprised at their full loan payoff amount. A loan from VIP in the amount of $4,000 amounts to a complete payoff in one year of $4,240. The total payoff for the same loan paid off over two years is $4,480.