If you have bad credit, you probably already know that banks won't lend you money. When an emergency comes up, you may feel pretty panicked and desperate, wondering how you'll come up with money you just don't have. Unfortunately, many people write off car title loans in Houston because they buy into the negative publicity. There are actually many advantages to title loans and, while they're not right for everyone, they can be just the thing to save you in an emergency. Here are some things you may not have realized about title loans in Texas.
1. You Keep Your Car
Many people mistakenly believe that Houston car title loans work just like payday loans, which require handing over your property to secure your loan. The truth is, you continue driving your car while you pay back your title loan, and your car's title is returned to you once you pay off the loan. As long as you don't default, you will never have to give up your car for a minute.
2. Houston Car Title Loans Can Save You Money!
While title loans do have high interest rates, they can actually save you a lot of money, depending on how they're used. It goes without saying that you won't save money if you plan to get a title loan to pay for a vacation, but you certainly can save a bundle if you're getting the loan to cover checks that are going to bounce or make payments on other loans or accounts.
Consider this: utility companies typically charge late fees, and hefty reconnection fees up to $100 if your service is disconnected. Banks charge up to $40 for each bounced check, and credit card companies and lenders charge late fees up to $40 if you're late on your payment. If you miss a credit card payment or car loan payment, your APR may also skyrocket, costing you hundreds or thousands more over the life of your loan! In cases like these, turning to car title loans in Houston to borrow the money you need can actually be a smart decision.
3. You Can Get More Money
Did you know you can usually get a bigger loan with a car title loan than you could with a payday loan or pawn loan? That's because the amount of your loan is based on the equity in your vehicle. Many people are surprised when they find out how much lender is willing to offer them, but remember to only borrow what you need to make sure you can afford to repay it.
4. You Probably Qualify
It's actually really easy to qualify for car title loans. Houston lenders will not even check your credit, so bad credit will not hold you back from getting the money you need today. To qualify, you must own your own vehicle outright with no loan, or with very little left on an existing loan. You must also be over 18. If you meet this qualifications, chances are you can get an emergency loan to help you get through a tough time!
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