In the event of sudden illness, injury, property damage, and the death in the family, a sudden expense often has to be made and such expense is usually large. If you have enough money in your bank account, you have nothing to worry because you will not have problem covering the expense. If no cash is available to cover it, you have to borrow. There are various types of emergency loan that you can rely on. If you cannot borrow cash from your relatives or friends, you may want to try to gain emergency cash from loan.
Car Title Loan as an Emergency Loan
Car title loan is among the most frequently used emergency loans to generate fast cash. In a car title loan agreement, the borrowers are required to allow the lender to place a lien on their car title. They will also be required to surrender the tile or its certified copy. They will regain the title of their car and have the lien placed on it removed if they repay the loan. In the event of default, where the borrowers fail to repay their debt, the lender will have complete right to repossess the vehicle and to sell it. A portion of the sale price will be taken by the lender to repay the debt.
Car Title Loan vs. Payday Loan
Car title loan is often compared to payday loan because they share many characteristics, including the absence of credit check requirement, the fact that both are emergency loans, their quick processing (borrowers can often get the cash before the end of the day), and the fact that both can be processed either online or in the store. The only difference between them is that payday loan is an unsecured loan whereas car title loan is often considered a secured loan.
Will car title loan solve your financial problem? You can read the advantages of relying on car title loan below.
The Advantages of Using Car Title Loan
There are several advantages of using car title loan to solve your financial problem.
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Car title loan is designed to be a short-term loan that expects you to repay it as soon as possible. If you take care of it properly, you can remove the debt quickly.
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Car title loan provides you with sufficient amount of cash to cover your emergencies. Car title loan can provide you with as low as $100 and as high as $10,000, an amount that is considered sufficient to cover all types of emergency.
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Have you ever heard about no credit check with a car title loan? You are always eligible to apply for the loan even if you have no or bad credit. If your credit score is good and you fail to repay the loan, your credit score will not be affected.
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Will you lose your car if you fail to repay the loan? The loan lender will indeed repossess your car and sell it, but the lender will only take a portion of the cash that is used to repay your debt. You can still keep the rest of the sale price. This is the worst possible scenario that you will face if you are dealing with car title loan.