Car title loans carry a reputation for “bleeding the poor.” The title lender does not chase after people to apply for loans, but it does offer quick access to emergency cash to those who own their own vehicle. The real fact of the matter is that being low-income is not a viable factor in who needs a loan. There are many different income levels that end up strapping people. It isn’t the dollar amount as much as the management of said income. A major deciding factor in loan qualification has nothing to do with income, but rather or not you own a vehicle.
For starters, since a title loan is a short-term loan, people who need emergency cash for an unexpected cost: medical, auto, home or funeral costs are most often reasons to obtain a loan. When any of these costs go over a few hundred dollars, many people of all income levels may not have the money in the bank to support the bill. Credit cards are often used to pay for these types of emergencies, but if the available balance comes up short, a person will need to solve the financial crunch in another manner. A Kelowna title loan can be a quick fix for those needing fast money.
Credit scores do not play favors to those with higher incomes. If a person isn’t able to manage their income proficiently and ends up making payment errors or omissions, getting financial help may prove to be a difficult task. Banks and credit unions will not look favorably towards low credit scores. Title loans will not look at your credit history since their loan will be secured by the pink slip of your car. As comforting as this aspect might be to someone in an emergency the applicant must remember that the short-term loan will need to be paid in 30 days. Since the loan is secured by the vehicle, it makes the payoff a top priority within the budget. For those with poor credit due to current financial difficulties, you’ll want to seriously consider how this loan will be paid off according to the loan terms and conditions.
Some car title loan applicants just need fast access to cash. Some employers offer pay cycles of one paycheck per month or bi-monthly. Some emergency expenses my fall when paychecks are too far away to help. It’s nice to have an option for fast cash during those times. A car title loan processes loans in as little as an hour. Where else can a person get a few thousand dollar loan the same day never mind in the same hour? The application is simple with many companies offering online versions to get one step ahead of the game. In fact, there are online car title loan companies keeping people in the comfort of their own homes. If you have exhausted all the options of obtaining money, do not worry. There is one more option for you. It is your car. Confused? You can obtain a car title loan and get out of financial misery.
How does the Kelowna Title Loan work?
It’s easier and faster to get a car title loan with a car that’s paid off. You will have to provide the car title to the lender. In return, the lender will provide you with money. Various auto financing companies and lenders offer online loan approval. They utilize the internet to reach maximum clientele. Also, many lenders design software applications for mobile to allow you to see how much loan amount you will get for the car title. The loan carries high rates of interest as it is a short-term loan. While approving the loan, lenders consider the value of your car instead of your credit score. It is possible that a few lenders may even require car insurance. The loan amount depends on three things:
- Your car’s value;
- The amount of cash you need;
- Your ability to repay the loan.
The Difference Between An Auto Pawn Loan and A Car Title Loan
If you apply for an auto pawn loan, you’ll have to provide your car along with the title of the car to the lender. Under the auto pawn loan program, you will receive more cash since both the car and the car title are in the possession of the lender.
What happens if you are unable to make Payments?
If you are unable to make payments on the loan, you may lose your only car. However, the lender may allow you to keep the loan for one more month after the due date. The process is known as “rolling over” the loan. If you’re unable to make payments even after rolling over the loan, the lender will repossess your car. The auto title loan company will sell it at an auction to recover the money you owe. So, it’s essential to pay off your dues in the specified time period. Besides being secured by the pink slip, a car title loan will charge a large percentage of interest towards any remaining unpaid balance once your original payoff date passes. Each month that passes will accrue another chunk of cash added to the balance that you will be responsible for paying. Without paying your fees each month, you run the risk of losing your vehicle. Car title loans can create a hostile financial situation if you cannot afford to pay it back in a reasonable time.
A tax return provides extra money which is not otherwise budgeted for everyday costs. If you have one of those returns which has been inflated by tax credits, then you will have access to money to pay down or even pay off the balance. As exciting as it would be to plan that dream vacation right away, you don’t have to put it on the shelf indefinitely. Once your title loan is paid, you can put the money dedicated to that bill and save it in order to pay your vacation in full. What a great vacation you will have when you know that upon your return there is no debt for it. The less debt you pay each month, the more you save on interest payments. Look on the bright side, if you didn’t get the tax return at all, your title loan would still be eating way at your paycheck and potentially causing additional problems from other budgeted areas.
Long-term debt creates a slow leak in a bank account.
Because most of these payments are only for approximately 5% of the balance plus fees, people feel good about being able to afford payments. The final cost is not taken into consideration while continued spending against revolving credit continues. A title loan is defined as a short-term auto loan. The payoff is expected in 30 days. The loan is clearly described as a high interest secured loan. If you cannot afford the quick payoff, this loan is not the best choice for emergency cash. Don’t put your car or budget at risk. Find a new way to obtain money if a car title loan does not fit into your next month’s budget.Short-term loans are access to fast cash. Whether it be a car title loan, a payday loan or a cash advance, they each have specific terms and conditions.
If a Kelowna title loan is the route you choose, which many people successfully do, then you
will want to find the best lender for the job. At Snap Car Cash we make the application process stress-free and easy as 1…2..3.