Car title loans generally refer to loans that are taken out for a small dollar amount which is then repaid within a short time period. In essence, the borrower is putting up the title to his or her vehicle as collateral for the loan. Most title loans must be repaid in 60 days or less.
Are title loans safe?
Title loans are tricky. In most situations, you should avoid taking out a title loan. These loans are highly dangerous and should only be considered if you have exhausted all other financial options. The reason title loans are so dangerous is that they place a value on your car that is much lower than its actual worth. A $2,500 title loan on a $15,000 car means that you lose ownership of your vehicle in the event that you can't manage to pay off the loan before the due date.
Are title loans ok for getting fast cash?
Title loans are one way to get cash quickly. However, in most situations there are better solutions. You could approach a friend or a family member for a short-term loan. Your bank or your credit union may also be willing to lend you money. Another option is to contact and organization like CreditAssociates to help you negotiate with lenders to reduce your debt. Another option is to refinance your existing car loan with myAutoloan. Refinancing can possibly save a bundle.