Car Title Loans in Texas

During some point in our lives, money is needed to cover some unexpected expenses which we do not have one hand. One way is going to the bank and taking out a personal loan. What if one has bad credit? The banks will not lend out money to anyone with bad credit. And borrowing money from family and friends may not be the best solution and it can damage the relationship. Or one can hold a yard sale and sell off what one doesn’t need, but at a loss and then, not being able to come up with the amount needed for that particular expense.

There is another solution to the short-term money problem, a car title loan. Instead of dealing with others, you use your car as collateral to get the needed cash. In order to do this, the car must be paid off. In this way, the car title loan company loans you the amount you need based on the value of the car in return for the title to the car. And you still drive the car, but you don’t have the title in your possession until the loan is paid off.

Unlike a bank loan, a car title loan is quicker to obtain, usually within thirty minutes and the process is much easier. There is no credit check to see if the applicant is credit-worthy as the car is the collateral, but the applicant must have a source of income to demonstrate the ability to pay off the loan.

In recent years, there have been negative views regarding car title loans. First of all, the most common complaint against these companies is that they take advantage of people. The next common complaint is the high interest rates. While these views are legitimate, banks and other lending institutions also have the same amounts of problems. In other words, it is not just the car title lenders. Of course, it is up to the person seeking a short term loan to work out the detail and shop around for the best rate. Being responsible for the loan is one of the most important details a potential customer must do. And just like asking a bank for a loan, the customer must read all the fine print regarding interest rates, payment plans, and any other financial legal issues that may arise. And one of the most responsible things a customer can do is to pay off the loan as soon as possible. There is no right or wrong in borrowing money by using a car as collateral; it is up to the customer to understand that it is a loan that must be paid back. Overall, a short term loan should not be complicated to obtain, but using a car title loan, one is able to obtain cash right away.