Many Americans who need fast cash for a financial emergency turn to car title loans. However, The Federal Trade Commission warns consumers to be wary of car title loans and their repercussions.
A car title loan is a way to get quick cash by offering up your car title as collateral. Car title loans typically range between $1,000 and $10,000, but car title loan providers will typically only offer a loan at 40% or less of what your car is worth. When you apply for a car title loan, you usually don’t have to go through a credit check or provide proof of income, because the lender feels secure in the fact that they can take your car if you don’t pay.
Most of the time, a borrower seeks a car title loan when they have a financial emergency and don’t feel they have another choice. The borrower approaches the title loan lender, who takes some time to assess the value of the car. The title loan lender then offers a loan based on a percentage of the car’s appraised worth. When the borrower accepts the terms of the title loan (usually less than one hour later), they hand over their car title until the loan is paid back in full.
Some lenders even require a GPS installed in the car or a remote immobilizer, devices which make the car easier to find and repossess if the borrower does not pay back the loan. Title loan lenders typically offer two methods for paying back a car title loan. Single payment loans require the entire amount of the loan, plus any fees and interest, to be paid back all at once, as a lump sum, 30 days after the loan is lent. Installment loans let borrowers make multiple payments on their car title loan. Installment loans can last from 3 to 6 months.
While AmeriCash Loans is an installment loan provider, we never hold physical possessions as collateral. It doesn’t make sense to us to take away your means to make a living and care for your family. Everyone has financial emergencies, and you shouldn’t lose your way of life because you need a little help. We also always require proof of income to ensure that you don’t get in over your head with your loan. An AmeriCash installment loan is a much safer option that gives you more ways to protect yourself find more information than a car title lender ever could.
The biggest AmeriCash Loans difference is our people and the way they interact with our customers. At AmeriCash Loans, we believe in real, person to person relationships and in helping our loyal customers get cash relief in their time of need. If you have a financial emergency, apply in-store or online today. Our friendly Customer Service Representatives will explain the process and get you the money you need quickly.