After filing for bankruptcy, you will likely see your credit score tank. Your bankruptcy will typically stay on your credit report for around ten years, and drop your score down often as many as 200 points or more. A bankruptcy, along with the difficult economic times can make getting a personal loan quite challenging.
It’s a bit of a oddity, The consumer that is or has been going through a difficult financial disaster are the ones that would most likely need to borrow money than other consumers, yet, those are the consumers which getting a loan is darn near impossible.
Many consumers that find themselves in these situations feel as though they have zero options. I mean, who in the world would loan you any cash during your tough times? One option if consumers find themselves in this situation is a car title loan.
Car title loans can be a quick and easy answer to your cash flow problems if you have had to file for a bankruptcy. There are a few car title loan lenders including 10 Minute Title Pawn that never even check a borrowers credit report. So if a car title loan lender never even sees your credit, most likely they would have no idea that you have ever even filed for bankruptcy.
Car title loans, also known as a title pawn, dependent on the lender can be substantially easier to obtain than a signature loan from a conventional source such as a bank or a finance company. A few of the small title pawn company’s have the procedure down so well, that in most cases, you will have the cash you need within minutes of completing the simple application for it. For the most part, if you have a clear car title, and a few other documents such as a pay stub, and a drivers license, your in and out of the car title pawn office within minutes.
So how much money can you typically borrow from these companies? Each car title loan company varies on requirements and amounts of cash they will lend on a consumer’s vehicle. In most cases, the loan amount is dependent on the value of the consumer’s vehicle. Typically the average car title loan is between $300.00 and $10,000.00.
If you need cash below 300.00, you would need to go to a pawnshop and pawn a smaller item such as jewelry, and or electronics. Dependent on the level of risk, the title pawn lender may require that you store the vehicle at their storage facility until you have re-paid the loan. But, in most cases, you will be able to retain possession of your vehicle until you have re-paid the loan amount in full.
Consumers must be aware that there are risks involved with these types of loans. Any business transaction you do will always carry some inherent risk, but when taking out a car title loan, reasonable precautions are advised. A consumer should always check their local Better Business Bureau (BBB) for any claims or reports associated with the particular lender.
Consumers should also make some judgment based on the lenders appearance; do they operate out of a nice clean professional office? Do the employees dress well, and does the environment appear to be friendly and customer service oriented? And as always with any financial transaction, read the fine print, and don’t be afraid to ask any questions if you have concerns prior to leaving the place of business, or signing any documents.
I do suggest that as with any financial decision, you do consider the pro and cons of all your options prior to taking out a title loan. One of the main things to consider with a car title loan is how you will pay the loan back, as well as how quickly. You need to have a strategy that gets you in and out of the loan fast. These types of loan products need to be utilized as very short-term options and be able to be paid off within a 30 to 90 day period.
If you keep a car title loan out for a long period of time, the APR (Annual Percentage Rate), can be daunting. Either way, a car title loan can be the perfect solution if your current financial situation deems it a necessity.