Car title loans are a form of subprime loan. They are subprime loans in the sense that they are tailor-made for consumers who have low income or bad credit rating. Lenders of car title loans are the only ones who can save you if you have a bad credit and you need cash outright. This is because most likely you will be denied a loan from other lending agencies.
Are Chatham-Kent Car Title Loans Interest Rates High?
Unfortunately, car title lenders levy a high interest rate on your loan. The reason is due to the risk they have to deal with borrowers like you. Also because the only assurance they have left if is the car you put as collateral for the loan, lenders are forced to increase the interest rate in case you default in paying your dues.
Thus, naming car title lenders as predators of your money is a mistake. They are just making their business secured through interest rates knowing beforehand that the consumers they offer loans to have a low income and are risky borrowers.
How Much Can You Borrow?
The amount you can lend using car title loans is not that big. In fact, you may only be approved of a loan which is half the price of your car. Therefore, if you are thinking of securing a car title loan to make a house or buy a new car then you are misleading yourself. Chatham-Kent car title loans are really just emergency cash solutions for minor emergency money crunches such as payment for electric bills, tuition fees and the like. You can’t really solve your very big and long-term money problems with car title loans.
Does It Mean That Car Title Loans Are Useless?
Just because Chatham-Kent car title loans were not made for your big cash problems does not necessarily follow that they are useless. As a matter of fact, car title loans have saved a couple of individuals from losing their leased house, electricity and the like. What is important for you to note is that car title loans are really just a quick cash emergency solution. Car title loans don’t do magic with your debts. Also be wary that when you default in your payment, you have to face the possibility of even losing your vehicle.
If you decide to secure a car title loan, just be tactful with your payment dues and use the loan for your necessary expenses. Don’t waste it for gambling or splurge it for shopping because if you do, you surely will end up with more debt problems in the long run which I am pretty sure you are not yet ready to handle.