According to Business Week, more than 200 million people across the globe are out of work and two-thirds of the developed economies are facing a slowdown in employment growth. A report published by the United States Department of Treasury states that public debt rose by an astounding $500 billion each year between 2003 and 2010 to a whopping $1.7 trillion. As of May 2011, the average credit card debt for those with a bad credit history was reported at $15,799 per household. The financial meltdown has forced people to handle their expenses more carefully. Against this backdrop, we find ourselves in situations where we are in urgent need of cash. In such a scenario, among the best options are title loans.
Title loans are similar to personal loans that you get from a bank. The difference is that in the case of a title loan, you offer collateral to get the loan. The most common form of title loans are car loans. The amount of money that you can get depends on the value of your car and also your monthly income. Title loans are gaining immense popularity, as they do not require credit checks and offer quick cash in a short span of time. Also, since these loans have short repayment cycles, they are easy to take care of.
Choosing The Best Title Loans
There are numerous lenders that provide car title loans to customers who have full ownership of their vehicle. While getting a car title loan is easy, negotiating your terms with the lender is difficult. Also, since the lender has the right to seize your vehicle in case of non-payment of your dues, it is of utmost importance that you choose the lender that offers you the best interest rates and repayment schedule for your loan. Here are some steps that you should take to ensure that you get the best title loan deal:
- Know the trade-in value of your vehicle: Since the loan amount sanctioned in car title loans depends on the value of your vehicle, it becomes extremely important that you know the true trade-in value of your vehicle. Estimate the value of your vehicle with the help of local dealers and car rate comparison portals. Lenders typically provide you 30%-50% of the value of your vehicle as the loan amount, so if you want to borrow the maximum amount, it would be good to know the correct value of your vehicle.
- Choosing the right lender: Always choose lenders of repute who can safeguard your information from any kind of fraud. Check their website to see the contact information and see if they have secure transaction accreditation. Reputed lenders are more likely to offer you lower interest rates and flexible repayment schedules. Also, check their licensing information to ensure that they are eligible to conduct business in your state.
- Avoid hidden costs: Gaining appropriate knowledge on the subject always helps when negotiating your title loan terms with the lender. Different states have different caps on the maximum amount of interest that can be put on a title loan. Always read the terms and conditions of the loan carefully to be aware of the hidden costs (application processing, documentation, late payment fees, etc.), if any.
Shopping for better interest rates and faster turnaround times has made this type of borrowing popular. Following these steps would ensure that you get the best title loan quickly and easily.
Cherryl Lewis has over 15 years of experience in writing for the financial sector. She has made a name in the financial domain by giving his valuable suggestions to many clients and readers. If you need in-depth information on car title loans or other types of short term loans like payday loans, student loans, business loans etc., visit http://www.tfciloan.com, http://www.cartitleloanscalifornia.com, http://www.acartitleloan.com. These sites not only provide all the information that you require to start off with these loans, but also give you an idea of what you need to apply for any of these loans.