Understanding The Benefits Of Car Title Loans

Car Title

Car title loans are some of the most popular types of loans today which is one of the benefits of car title loans. This is mainly because they are easy to access and are tied to very few requirements or restrictions.

Unlike bank loans that demand a whole bunch of conditions including stellar credit score, guarantors, and collateral, car loans come with very few restrictions. Often you simply only need to have the title of your car in order to get a short-term loan.

In addition to this, little paperwork is often needed with a car title loan applications being approved in record time. When faced with a financial crisis that needs money fast, title loans can help you get back on your feet quickly. Reduce your total credit card payments by up to 30% to 50% with Debt.com.

Below are some of the benefits of car title loans you need to know.

Benefits Of Car Title Loans

Swift Cash Access

Any car owner with a steady income can apply for a car title loan. Applying for the loan is relatively easy as you can do it online or visit the merchants’ physical location. Upon filling in all the required paperwork, a representative then takes photos of the car and schedules a day to collect the title.

You can as well come equipped with the car title to facilitate faster processing. Once everything checks out, you can have the money wired or transferred to an account of your choosing. Most of these loans take between 24 hours to a few days for them to be approved.

Credit Score Doesn’t Matter

Your credit score doesn’t matter. It’s all about you having the title to your vehicle in hand. With the tough economic times and most people finding it hard to maintain a stellar credit history, more and more people are unable to access conventional loans. This is because banks and other loaning institutions have to pull an applicant’s credit report before processing the loan request.

This, however, isn’t the case with car title loans. All the lender needs are your car title and nothing more to process the loan. The few restrictions are what makes most people go for a title loan and stay away from conventional bank loans.

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Top Financial Mistakes People Make When Buying A Car

Mistakes when buying a car

Mistakes when buying a car

We all make mistakes when buying a car, and a seemingly small mistake related to a car loan can actually cost quite a bit of money and erase the savings that have been negotiated on the actual purchase price of the vehicle selected.

If you want to get a great deal on your next car loan, you will need to do much more than just get a great deal by haggling with the salesperson or over the sticker cost.

The biggest mistakes related to a new car purchase relate directly to the finance side of the process. When you make the right decision and consider all the options, you will be able to save several thousand dollars – or more –over the life of the loan.

Top 5 Mistakes When Buying A Car

Trying to Make a Purchase with a Low Credit Score

Regardless of your credit score, there are lenders out there who will provide you with a loan. What you may not realize is the extreme amount of interest you are eventually going to have to pay. This is simply because you are considered a bigger risk. When you have good credit, it means you pay your bills on time, don’t exceed your credit limits and have a good grasp on your finances. This is reflected in a high credit rating, which lenders are willing to give a great interest rate, reducing the cost of the vehicle purchased.

However, those with low credit can wind up paying obscene amounts of money in terms of interest. This can cost them big in the long run and there are some who actually wind up paying more than twice or more of the original cost of the vehicle that is purchased.

Negotiating a Lower Monthly Cost Rather than the Actual Purchase Price

Purchasing a vehicle based on the expressed monthly payment is essentially a trap. While you do need to know what you are able to realistically afford each month, this is not something the salesperson should know. If you let them know this, then you will forfeit your entire power for negotiating a better deal. You should not let the sales person turn you into a buyer based on monthly payments.

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I Refinanced My Car Loan, Dropped 1%, And Still Pay $4 More a Month!

Car Salesmen Tricks They Do Not Want You To Know

Recently my bank, USAA, with who I absolutely love doing business with offered me a deal to refinance my car with a new car loan at a reduced interest rate. So, of course, I pounced on it. I would be lowering my interest rate by almost 1% and moving another loan back to my favorite bank. But, when I called, I was a little shocked at first when my monthly payment actually rose by $4 per month instead of dropping. I was expecting my car payments to drop since I was reducing my annual interest rate on the car loan from 4.38% to 3.59%. But, I still took the offer and car refinance loan. And, here’s why… I Cut Off … Read more