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commercialleaseadvisors-blog · 5 years

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WHAT'S ALL THE HYPE ABOUT CAR TITLE LOANS?

I think we would all agree that taking out a loan to help out with our finances is pretty much a last resort. Let's face it, who wants the burden of making payments every month on money we have borrowed, spent, and now owe?

Taking out a online title pawn, cash advance, or yet another credit card isn't the first choice in getting caught up with our budget. So why are there so many car title loan, payday loan, and installment loan lenders out there willing to hand out cash overnight with barely any questions asked?

Because when times are tough, the checkbook is at a negative, and the bills need to be paid, people look for the quickest and easiest way to get some cash. Fast cash lenders, such as payday loan lenders, loan on the basis of the borrower's job and income and the assumption that they will be paid back with that person' next paycheck. Depending on how much the borrower makes, as well as the capped amount determined by the state the lender loans in, consumers can get anywhere from $200-$1500 directly deposited in their bank account within 24 hours of being approved.

Payday loans can be of help when their is a small financial emergency that needs to be taken care of but are expected to be paid back right away. If the borrower is not able to make full repayment, they can "rollover" their loan but this will end up costing them more in the long run. These types of loans are meant to be short-term, providing a temporary fix for one's finances. Car title loan lenders loan you money based on the value of your car or truck and require that you own the car and hand over the pink slip until you pay your loan back in full. They have the assurance that if you default on your payments, they can take you car as payback for what you owe. Car and auto title loans have become popular being that a person can borrow up to $5000 depending on how much equity their automobile holds. It's simple and fast process providing the borrower with a fairly large sum of cash.

Borrowing against your car can be dangerous, though, if making the loans payment s becomes difficult. Just like a traditional car loan, the lender has the right to re-posses the borrower's car should they go into default on their loan payments. Interest rates on these types of loan are much higher than traditional bank loans, credit cards and in some cases, payday loans. APR's (annual percentage rates) can be as much as 250% which can lead the borrower into a financial windstorm should there be an issue making payments. Keep in mind that these loan are also short-term in comparison to a personal loan one would take out with bank. You won't have years to pay you loan off.

Having been put into the "predatory lending" category by many consumers, car title loans are the subject of detailed reports put out by non-profit organizations such as Center for Responsible Lending and the Consumer Federation of America (CFA). These organizations seek to inform consumers about the dangers and lending practices of such loans.

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commercialleaseadvisors-blog · 5 years

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CAN A CAR TITLE LOAN GET ME TO THE SUPER BOWL?

The much anticipated Super Bowl 2014 game between the Ravens and 49ers will set you back anywhere from $2,119 to $53,000! Is it worth getting a car title loan to cheer on your team to that ever coveted title of Super Bowl Champs?

If you're one of those die hard fans trying to finance your trip to watch the two teams battle it out, you may have to seek out all of your resources. But can a car title loan get you to the Super Bowl? Sure, it could help but is it worth it when you get back home and have to face the reality of paying back that loan? Putting yourself in a precarious position with your finances may be putting more at risk than you think. Tapping into your mortgage or rent payment, putting off monthly bills or draining your savings will only start a vicious cycle of cash chaos!

Spending that amount of money when you don't really have it needs time and consideration as well as a budget to afford it. A short-term car title loan can get you up to $5000 based on the value and equity of your car. There are no credit checks so your chances of getting approved are pretty good as long as you own your car outright, have the pink slip to prove it, have a checking account with direct deposit, have a steady job and make the minimum monthly income required by the lender.

Bear in mind, you will have to pay a fee to borrow the money. That amount will be added onto the amount you borrowed. For example, if you borrow $1000, you will pay (on average) 8% in fees. That means you will be paying back about $1200. Most car title loan lenders expected to be paid back within a month. If you can't pay in full, you will have to extend your loan which will cost you even more with interest and fees. Paying back in three months will cost you a total of about $1625. If your loan payments are "intercepted" by the inability to pay, you risk losing your car. That's right, the car title loan lender has the right to repossess your car for non-payment. That means you will be permanently benched from getting to work, school and everywhere else.

With that being said, ask yourself if it is really worth it to borrow to go to the big game? It may be best to find an alternative and much more affordable ways to enjoy game day. You may not be there in person but you can certainly enjoy the day without finding yourself tackled by debt.

*Going Big- If you or someone you know owns a big screen, enjoy being there (virtually) while getting a play-by-play on all the action, having the option to use a bathroom that doesn't have a line, as well as making unlimited trips to the snack bar without paying a fortune. Fewer people watching means a better seat all around!

*Get your game on at a local sports bar- Cheer as loud as you want without offending anyone. After all, isn't that why all the other people in the bar are there? Enjoying a crowd who is rooting for the same thing can be just as exciting (well almost) as the real thing. Not to mention, your food will be brought to you instead of having to hike of dozens of stairs and potentially miss a good play.

*Tailgate without the ticket- If you really want to be there and are close enough, have a tailgate party in the parking lot on the day of the game. Enjoy the pre-game excitement, take photo's with fans and cheerleaders, and post your party on Facebook so you can let your friends know you were there (even if you didn't actually make it inside)

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