Car Cash Loans and What You Need to Know
You need some quick cash. There’s just one problem: you have little income and already have done damage to your credit. What will you do to keep afloat? If you’re considering car cash loans, you may have found the right answer—but there are a few things you’ll want to know first.
“Car Cash Loans”—What Are They, Exactly?
First, let’s define this term “car cash loans.” Another word for them is a car title loan, or auto title loan. Specifically, these loans refer to short-term loans you take out from a lender while putting up the title of your car as collateral.
This means that in exchange for receiving quick cash—even with bad credit—you put up the risk of losing your car in the event of a default. If you pay off your car cash loan in time, then you’ll be able to continue owning the car and can move on with your life.
For many people around the country, the idea of a car cash loan is something they associate with payday loans—a risky, futile endeavor that only gets you into more debt. But once you really understand the benefits of these title loans and how to manage them, you’ll see how they can really help many people out with a quick infusion of cash.
The Ins and Outs of Car Cash Loans
Before you secure a short-term loan for yourself, let’s look at the defining traits that make car cash loans the intriguing options they are:
Quick cash—i.e., a “short-term loan.” The title loan is essentially a short-term loan, which puts it in the same category as a payday loan. These loans often come with high interest in order to protect the needs of the lender. High interest rates mean that you’ll want to pay off your loan as quickly as you can to avoid getting even deeper in the hole.
Collateral. Putting up your car against the loan is not without risk. If something happens and you’re unable to pay off the loan, then you’ll lose the car title to the lender. Why is this the case? The lender is taking a risk themselves—they see that you have little income or bad credit, and they need some sort of assurance that the loan they give you will give them some sort of return. Without the title of the car being on the line, it can be very difficult to find a short-term loan for many people.
The title. When you take out a loan of this type, the title is perhaps the most important part of the transaction. You’ll provide the physical title itself to the loan office, which allows them to take possession of it in the event of a default. If you pay off your loan in time, however, your loan will be returned upon the last payment.
Sound like a lot to digest? The process is actually quite simple once you know the basics. Essentially, you’re receiving a short-term cash loan in exchange for putting up the risk of your car—and the promise to pay off the loan with interest, of course.
Ideal Borrower for Car Cash Loans
If you’re reading this, there’s a good chance that you’re wondering if a car cash loan might be right for you.
The truth is, a car cash loan can work out for just about anyone, provided that they fit the following criteria:
The need for short-term cash. If you have a need for long-term cash, a car cash loan likely isn’t going to offer you the amount of cash that you need. Short-term cash can be important for a number of situations, including paying off emergency debts or simply getting by while you begin a new job.
Low credit score. If you’ve done damage to your credit score, then you know just how bothersome it can be to live with. It’s harder to get a mortgage, harder to get an auto loan, harder to do everything. The advantage of car cash loans is that by putting up the title of your car, you take away a lot of the worry of a lender who might otherwise not lend you the money. It helps you get back on the right track for building a history of paying off debt.
Low income. If you have low income and you need a quick influx of cash, then payday loans are usually a bad idea. They come with high interest rates and will require that you hand over cash from your paycheck—which is really your financial lifeblood. The problem is, people with low income usually have trouble securing a loan. That’s where car cash loans can come in handy.
Although you might not think of yourself as the ideal borrower at this point, you may qualify as the kind of person for whom a car cash loan makes the most sense.
Building a New History of Paying Off Debt
For many people with bad credit, car cash loans offer a new start. It’s a way to not only receive the cash you need, but to build a history of paying off creditors responsibly.
When your credit score has been damaged, there are often few ways for you to get back on your feet. Some people stop borrowing entirely. But if you want to take out bigger and better loans in the future, building a credible history with lenders is a step in the right direction.
Make sure that you have a plan in place for paying off a loan like a car cash loan. The high interest rates can add up on you quickly if you don’t. And when you can’t afford to lose your car, defaulting is not an option.
The good news is that short-term cash is available if you intend on being responsible with your payments and understanding every step in the process. Call us at (888) 663-7074 or fill our our online form to start the process and receive a free quote today.