Title Loans Common Misconceptions

The idea of a title loan frightens many of those individuals who are in a bind and looking for a loan

. However, much of what you may have heard about title loans is a misconception and a result of unethical business practices from those handing out the loans. So before you rule out the option of this type of financing, you should become familiarized with what using this form of extended credit really entails.

A title loan, sometimes referred to as a title car loan, refers to a variety of cash advance that requires you to use the title of your automobile as collateral. Generally, these are short-term, instant forms of credit.

One reason borrowers are so apprehensive over this kind of loan is that the interest rate is high. Therefore, it is automatically assumed that the loan is a scam in order to repossess the persons car. However, the high interest is because the person is most likely looking for an immediate loan and may have a credit history that is far from being perfect or may be nonexistent. Because of the high risk of the client, the loan is high interest.

Another common misconception of this type of credit is that there is a good chance that you will lose your vehicle. This is a far cry from the truth, since only about four to eight percent of those who default end up losing their vehicle, and here at CreditNowUSA, we allow you to keep your keys. We work with you every step of the process to ensure that you get the cash you need without having to surrender your wheels.

It is also thought that this particular category of loan automatically destroys your credit. Once again, this is a merely a misconception. In fact, a title loan affects your credit in the same manner that any other loan would. As long as you pay the loan back on time, your credit will not be affected negatively.

Millions of people file for personal bankruptcy every year, but many are unaware of what the process entails. Before you legally discharge your debt liability, there are a few things you should know first and we will discuss them in our article today.

Bankruptcy Does Not Affect Liens

Most debts qualify for discharge during bankruptcy, meaning you will be relieved of your legal responsibility to repay your debts. However, if there is a lien against any of your possessions in connection with a loan, such as a car loan or a mortgage on your home, your creditor may still repossess the collateral.

Automatic Stay Protects the Consumer

Once you file your bankruptcy petition, the judge will likely implement an automatic stay over your debts, which prevents creditors and debt collectors from pursuing further payment from you. If a creditor continues to practice debt collection or files suit against you for outstanding balances, you may file a complaint, which may result in a fine for your creditor or debt collector.

For more information, go to Title Loans at http://www.creditnowusa.com/Title-Loans

by: Money Lender

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