The Car Title Loans – Are They Always The Best Option

If you have a bad credit score, then it is not easy to avail the personal loans in California. However, there are still some loans like car title loan that does not require credit checks. You could get fast cash with minimum verification of income. Before availing such kind of loans, you must research well on the topic and see whether it fulfills your needs.

Before lending the money, the company will fully evaluate the actual worth of your vehicle. Most of them will consider the wholesale rate only and lend you money accordingly. In the meanwhile they will hold your car’s title. You have to be ready to pay heavy interest for the short term loan. In case you met with a financial crisis and fail to repay loan and interest on time, then you have no other option than to sell the vehicle to company.

What All the Documents you must have in Hand?

Driving to the entitling company might seem a simple process, but it is certainly not. You have to read all the documents carefully before committing legally to the professionals. Check out the method used by the company to calculate interest rates.

Many companies charge hefty interest rates of 3% per month. It means that you have to pay 36% interest on the principal every year. As these companies have a different category to that of banks, they are not restricted to usury laws. This means that they can charge higher interest rates.

Besides this, check the penalty you might have to pay in case of late payments. Will the company take the car away if you fail to pay a single payment? Will they charge any additional fees on late payments? These charges vary from company to company. You could either talk to the representatives or read blueprint thoroughly to get the answers.

Check Out All the Alternatives to the Car Title Loans

It is better to evaluate all the alternatives to car title loans. Do not forget to compare the penalties imposed on other options, interest rates of different options and much more. Credit card is also a quick way to get money faster. Compare the interest rate of credit card to that of entitled loan.

If your card does not have higher limit, then you can always call the company to make modifications. If you have a better payment history with the company, then there are more chances that they will increase the limit.

Are the Emergency Loans Offered by Employer Better?

Most of the companies offer emergency loans for their permanent employees. The best thing about such loans is employers charge lesser interest. Most of the reputed companies charge no interest at all. You can talk to your employer to know more about this type of loan.

Ask for a fine print of the loan to know the things better. Besides this, check out the repayment options. Many employers will directly deduct the monthly installments from the salary. The employers will also offer financial assistance so that you can choose the best option.

Now, you are aware of all the possible options to satisfy your financial requirements.