A car title loan can be a good choice when you are a facing short term financial emergency? It’s happened to the best of us and it’s important to find a reputable lender. We run into cash flow problems and need money to pay the mortgage or other urgent expenses. Important bills are mounting up without the means to pay them and there’s nowhere else to turn. Or something in life is demanding your financial attention immediately. Often it’s difficult to see and be rational in a situation like this. We want to borrow money, but we don’t think about the expenses that come with online title loans.
When people need fast cash, they often look for payday loans and of course car title loans. Texas alone has dozens of payday lenders and cash advance companies. Incidentally, most lenders also provide loans where you use the equity from your vehicle as collateral. Many of these firms can carry high interest rates. Other sources of cash can include borrowing money from family or friends. This type of financing can create rifts that can last for decades. Some Texans will seek installment loans or bank financing. Most often it’s difficult to get approval with bad credit or a past bankruptcy.
An often overlooked method to get fast cash is to use a vehicle as equity. This doesn’t affect anything other than your car. As you’re using the vehicle’s collateral, we call this an online title loan.
There’s no shame in needing money. Most of us need it every day of our lives, and sometimes the money we have coming in is less than the money going out. The assets we have don’t give us any benefit when we need quick money. So we are looking at the monetary black hole that many of us in Texas know all too well.
That’s life in the real world and unfortunately, options have a limit. The great news is that there is another option. Online title loans in Texas are easy to come by and your car is the collateral. Financing is done by many reputable companies and brokers. Compare a secured loan to payday loans and these are often a better option.
We’ve all been there when we need cash to get through some trouble. The car, motorbike or SUV sitting in your driveway could be the way to get that money and get out of trouble. On top of that, unless you have a problem in repaying the loan, then your vehicle can be the collateral.
Compared to other finance options, an online title loan will be easier to handle. These come from reputable companies that are licensed by the State. Many are local operations based in large metro areas like Houston or San Antonio. Others are nationwide companies that have retail locations throughout the state. While they have brick and mortar locations, nearly all have a system in place where they fund online title loans. They can be less stressful and more affordable than short term loans. We can’t think of the more obvious routes to get some money in less than 24 hours.
When your car is the collateral there are issues at play. Some companies won’t let you drive the vehicle anymore, but this is rare in Texas. It gives the lender a layer of protection, which is not there with unsecured loans such as a payday loan. Then it means that often the interest rates are less expensive than other types of cash advances. Many companies in Houston and Dallas will accept your pink slip as collateral. You can drive your car for the life of the loan.
These types of title loans are less stressful because they are quick to arrange. It’s important to know when working with a company that’s licensed in Texas. Most title loan companies in San Antonio and Dallas will do a vehicle inspection onsite. Once you secure the loan on your car make sure there is no prepayment penalty. Take the documentation and pink slip to the lender so you can prove the automobile is yours. An online lender can often arrange a cash payment that same day. This means funding can happen within one or two business days.
Some people have a concern about the stigma of taking out an equity loan on your auto. But the truth is nobody needs to know if you don’t want them to. As long as you keep up the repayments your car is safe and your finances can be back on track. I bet in your neighborhood there are several people who have online title loans out on their cars. Reputable lenders give out more than $4 billion a year to residents in Texas for car title loans. This amount is over 100,000 loans secured to a vehicle with Texas license plates.
So there is no reason to have a concern about considering a car title loan. It can be more affordable with less interest than a bank loan. It’s a quicker and more reasonable option to take than a payday loan or other type of cash advance. Also, the Texas Department of Motor Vehicles will give access to vehicle registration data in their system in no time at all.
We have to show balance here and talk about the downsides as well. The truth here is that you might consider taking out a secured loan on your car because you are short of money. If you can get money from a friend or relative that is the way to go. If you’re in a situation where your income is not going to go up, then you have to be careful about the loan amount. Anyone who falls behind on the loan repayments will face a difficult problem. You will face the prospect of losing your vehicle. No one wants to be in a situation where their car is repossessed by a Texas loan company.
For this reason, it is important that you are in control of your thoughts when you consider any type of loan. If you’re in any doubt, speak to friends and family, or somebody trusted. The internet is a good resource to look up information on title loan companies in Dallas or San Antonio. Play it safe by trying not to take out an online title loan that is more than 50% of your annual monthly income. Try to stick to a number that’s no more than 20% of take home pay. This is actually the most someone can borrow in specific areas of our state. Take that as a sign of where safety lies. Borrowing a small amount is not always possible in real life. If you can, make sure you only borrow the smallest amount and pay it back.
There are criticisms of this type of online loan. It’s fine as long as you go with a reputable company and you can keep up the repayments. Feel free to renegotiate terms if you do get into trouble with monthly payments. You can cut your chances of having your vehicle lost to the lender. The bottom line is that there are risks that come with title loan offers. Risk is present in many things in life and short term financing is a big part of that. If you have a bad credit history, poor cash flow, or have run out of options then a car title loan can offer you a way out. Be sure to find an online company that provides online funding in large cities like Fort Worth and Austin. There are many websites in the state that can help you find a lender. Our site is a good place to start.
You are of course should be skeptical and cautious when taking out a vehicle title loan. Thousands of people take out car title loans in Texas each year on bad advice. Make sure you can afford the repayments and specific loan terms. Do your research and find good rates for Texas car title loans. Be sure you don’t have other options with lower interest rates.
But you should also look at the bigger picture as well. If you don’t take an online car title loan then what will the implications be? Could taking a small risk on financing your vehicle stop you from losing your home? Or could it stop some other negative thing from happening to your finances? All these could impact your quality of life, mental health, or happiness? Online title loans in Texas aren’t for everyone. But they can solve your short-term money troubles.
The bottom line here is to weigh up your options and look at why you are short of money and how you will repay it. What is the lesser of two evils? What will have the smallest impact on your life if it goes wrong, and the most impact on your life if it goes right?
Don’t look at glossy advertisements and compelling sales pitches. Look at the bottom line. Try to get a high-quality loan but with the lowest interest rate and the least penalties. Always compare lenders to see which offers the best terms and rates. Many companies that provide online title loans in Texas will show you current rates. There are tons of places online you can look and discuss your options. Most sites will give reviews and feedback of lenders. What we are saying here is to research. Everyone has access to the Internet and can look up a company in minutes. So make use of it to make sure that when it comes to taking out a title loan. Any sort of finance you know what happens with all the possibilities.
One thing to watch out for is that the rates on the title loans are what you expect. Some unscrupulous companies will offer you a low APR. When you need to sign for the loan it will be a higher APR or different terms. There may be a legitimate reason for such a discrepancy. A reputable Teas loan company will make you aware of this. When we are talking about education there’s something to consider when checking terms. We are talking about checking that the title loan is reflective of rates in the State of Texas. Be sure the online title loan is the same rate that you sign up for. If you take out a loan that has different terms than what you signed up for it will be best to contact an attorney. You can find lawyers in Dallas or Houston that would be glad to represent you in a case like this.
Don’t Panic If You Can’t Pay Your Title Loan Back
If you are struggling with repayments on your title loan, don’t panic is the first piece of advice. You have to work on the theory that you have chosen a good company. This firm is not a predator and will try to help you if you’re struggling with repayments. At the end of the day, they could lose money if they have to take your car and sell it on. So it often in their best interest as well to keep you paying back the money and keeping your car. Much like payday loans and cash advances they have an interest. The company would rather you keep paying than get no payments if you default.
If you think you are going to default on your loan it’s crucial you speak to the lender before happens. As soon as you default they can take your car away. It is often best to not hide from reality if you are still struggling to make online payments. See if the lender can offer you another option to keep your car, which can often mean keeping your job. Also, check with your local city and state regulations that govern what happens when your car runs the risk of repossession. Not all cities have rules in place to regulate this, but larger areas such as Dallas, Austin, and San Antonio have legislation in place.
In summary, yes there is a lot at stake with online funding. Car title loans aren’t for everyone. We’re talking about using some of your vehicle’s available equity. No, it’s not ideal, but life is not ideal for people who need cash. It often means making hard decisions that could have bigger impacts if you fail. On the other side of that coin is that they could dig you out of the financial hole. Relieve your stress with an auto title loan and move on with your life with minimal long-term impact.