When you need cash, you need it now not in a week. You may need to pay a utility bill, a car payment, a house Payment, or you may have an emergency; when you need money quickly, you may want to consider a car title loan instead of a traditional short term loan. But just like anything else, you need to consider the worst and the best thing that could happen with a car title loan.

Let’s first discuss the good points. When you obtain a car title loan, the first thing you need to realize is that you cannot get yourself in a lot of trouble borrowing more money than what you need. Most car title loans are no more than $1500.00 while most are $1,000-$1200 there are some who maximize it in order to get out of debt. It’s important to remember that what you borrow, you will have to pay back so only get what you know you will be able to pay back.

Another good thing about this type of Loan is that your credit score is not a determining factor in whether or not you qualify for a loan. In fact, your credit record is not even obtained for any reason. The loan is only given to those who can provide proof of a vehicle that is worth more than what they are requesting, can provide proof of their income, and have a valid driver’s license or form of identification. It’s also important that they also see proof of where you live. If you pay back the money that you borrowed, there should never be a problem with you borrowing more money in the future.

Now, some disadvantages of this type of loan. It’s a short term loan so you have to be able to pay the full amount back usually with your next paycheck. If you don’t pay back your loan when you agree to pay it back, you may find yourself unable to obtain another loan in the future. In addition, they will report the failed attempt to collect a debt on your credit record which will make your credit score even lower. In an attempt to collect their debt back you will have a few opportunities to work with them if you find yourself having trouble meeting your due date but if you do Not answer the phone, they will assume that you don’t want to negotiate and you will ruin your reputation with them.

Last updated by on .