Cash advances and title loans are means to provide money to people who need it quickly and without hassles or restrictions. An outright cash advance could require a credit check. The payday loan approval process can include income verification. Auto title loans allow you to place your vehicle down as collateral without a credit check or required monthly income.
One reason to need a title loan Dallas is because of an unexpected medical bill when you do not have health insurance. Doctors appointments are expensive and require some sort of initial payment upfront that you may not have readily available. In the case of injury or urgent medical need that requires you to visit an emergency room you may be facing even larger bills that need to be repaid quickly to get additional care and follow-up treatment. In these cases, cash advance loans are the best solution for people who have bad credit or no credit.
Medical bills are especially problematic when you are a parent with a sick child. Every parent wants to be able to help their child feel better as soon as possible and get the absolute best care immediately. Payday loans, auto title loans, and cash advances are often able to offer loan money on the spot or the next business day.
Some people may tell you to be wary of these types of loans because they have heard bad things about them in the press. To be sure, failure to repay the loan can result in spiralling interest costs and excess fees. However, this is true of any loan or credit card bill that is not paid on-time or in full when the amount is due. Loans of any type require responsibility by the borrower in paying back the loan promptly, and auto title loans are no different.
Another criticism of auto title loans is that the loan company can repossess your vehicle. Again, this is only true if you fail to repay the loan within the agreed time-frame. There is no risk of losing your vehicle as long as you adhere to the terms agreed upon at the time of your loan application. If you experience financial hardship and are unable to make a loan payment you have the option of paying the interest each month until you are able to pay back the loan in full. This is not recommended, however, because the interest costs can quickly add up. You should only apply for loans that you know you will be able to pay back.
There are some title loan companies that are not as reputable as others. You should make sure you know who you are dealing with before handing over your car title to someone who may attempt to scam you.The amount of the loan offered in exchange for your car title as collateral depends on the company offering the loan and the type of car you own. Some companies may have a standard loan amount for a specific type of car, while others will make the decision based on other available factors.
Auto title loans are also criticized because the blue book value of the car is not always offered as the loan amount. Title loans should not be thought of as the loan company buying your car in exchange for cash, instead they are offering you a loan directly. The car title is a security measure to make sure you pay the loan back as agreed. In exchange, you do not have to submit to a credit check or worry about meeting income requirements. This is the trade-off for being able to get the money you need exactly when you need it.