subject: Instant Loans: Convenient Solutions To Financial Emergencies [print this page] Youll have several solutions to choose from when times are tight and you need money to cover for expenses. Some people opt for payday loans to cover for small amounts, which should be fine as long as youll get by with the cut on your next paycheck. Others pawn assets and valuables for instant cash; this is a viable option if youre willing to part with an heirloom and receive an amount thats a fraction of the items value. Your best alternative still involves loan applications, complete with all the paperwork and credit checks. The process is too tedious if you only need cash to tide you through the next month, though. You can avail amounts comparable to a bank loan if you have significant collateral to put up against it.
You can always hock your ride and obtain instant loan approval. Applying for a car title loan is similar to pawning a vehicle, but the difference is in the terms of the agreement between you and your lender. Pawnshops offer decent appraisals and apply reasonable interest rates, but your broker keeps the vehicle until the loaned amount is paid in full. Car title lenders, on the other hand, usually require that you hand over your vehicles registration and papers, but you can still use the vehicle as your loan period matures (and expires). Theres a tradeoff to this privilege, though; the appraisal rate is often lower than the amount pawnshops propose, but its worth the compromise if your commutes arent sacrificed in favor of quick cash.
The main advantage of car title loans is in the processing. Your application is approved without much paperwork because you have collateral to offer against the loan. Unsecured loans are privileges only enjoyed by people with outstanding financial histories; youll have fewer options if youre in debt or if youve recently filed for bankruptcy. Convenience is the main pitch of car title loans, especially if youre looking for a quick fix to an emergency.
As appealing as car title loans may seem, you still have to consider all the precautions before you entrust ownership of your vehicle to a lending company. Many lenders enforce rollover rates for dues that exceed the deadline. This means that youll have to pay for the loan amount plus a cumulative interest rate which can only increase with time. Paying for a loan is difficult if your dues double the appraised value of your vehicle. Consider all your options before you sign up for a secured loan. If you think you wont make it to the agreed due date, then it is best if you sold your vehicle to a dealership and maximize its appraised value. Car title loans are only recommended for people who plan to recover their vehicle before the contract expires, and it shouldnt be a last-ditch effort to gain a quick buck while maintaining ownership of a prized convertible. Lenders like Hock Your Ride offer reasonable terms stretched out and over doable payment periods, but its still your responsibility to ensure the lender doesnt forfeit on the loan and leave you hanging with fewer resources and solutions.
