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Is It Better To Use A Title Car Loan Or A Cash Advance?

June 04, 2012 | Comments: 0 | Views: 216

If you've already convinced yourself that what you need is a vehicle title loan, then you must have utmost confidence on what you're getting yourself into. Though it is one great way to get funds fast once you have a car that you have clear and free title to, you still need to understand the situation and prepare yourself with the possibility of losing ownership of your car if you're not capable of paying the loan anymore. Worst case scenario though.

For most of the working people, getting a small loan using their vehicles title is a common simple thing. And it's not really that big of an issue if one is responsible enough to handle the loan and is capable of paying the amount including the added charges and fess for penalties. As the saying goes, "intentions start out being the best, but at times it doesn't turn out as planned".

If you decide to bring your vehicle title to a loan company, one of the common requirements that they would apply is to make sure that absolutely no amount is owed against the vehicle to anyone. Full coverage insurance also falls as one of the major requirements for such, and this goes because though the title is with the loan company, the owner may still use the car that is fully insured in case accidents happen. This is the basic reason why some of the loan companies require the owner to surrender the car upon approval and keep the car until the loan is fully repaid, specially loan companies who doesn't require vehicles to have full insurance coverage.

The loan amount from your automobile's title usually varies depending on the loan company you prefer. For some companies, they provide a fix amount regardless of the worth of the vehicle, while other varies depending on their given rates. Getting through your list of preferred loan companies and carefully checking which one can provide your needed amount and terms is highly advisable.

Some companies also have a limit on the number of times they allow a loan renewal, specially for those who usually incurs delayed payments. But renewing would mean paying the amount of interest just to get an additional time or extension for the loan. Basically it is just similar to cash advance loans or payday loans, but the for this type of loan, your car's title serves as the collateral.

The drawback with this type of loan is that your failure to meet or comply with your loan obligations gives the loan companies every right to take ownership and acquire your vehicle. So before taking such loans, make sure you are positively confident that you are capable of paying back the loan as agreed upon with your chosen loan company, or you'll end up without a car and more in debt. If possible, try to consider if getting a cash advance loan or payday loan can solve your financial slumps and weigh things out before you consider risking your beloved vehicle.

Cooper is both a writer, a freelance wedding photographer, and an occasional loan consultant. Now currently working as a blogger for several sites related to cash advance and payday loans online.

Source: EzineArticles
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