Using an Auto Title Loan for Your Dream Car

By:Mark Robinson

Are you in the urge to finally having that Porsche red sports car that you want to have all these years? But then, your current financial situation could not possibly permit you to be able to pay it in cash since you have other things to pay with your existing salary. There are the school dues of your children, the utilities like the monthly electric bill, and you're still paying for the loan of your house. You have been asking and looking around for someone or some entity to provide you with a car loan. One of the things that you've found out is that you can actually avail of an auto title loan. But, wait, hold your horses - before you go to this lending company and get that loan, you may want to know about car title loans.

What Is an Auto Title Loan?

An auto title loan is an easy way to having that dream car. It requires only a minimal qualification: all you need to have is a job. The catch is that this loan is high risk and has unbelievably high interest rate.

Why Is It So?

It is being offered as a small emergency loan, so lenders give skyrocket interest rates. An average annual interest rate for this loan is triple digit or up to 300 percent interest rate every year. Because of lax state laws, lenders could also repossess your car if you could not pay your loan at an agreed date. Since they have duplicate keys of your car, lenders could haul your car from your own home late at night. The period of time given to customers is also very short. As what the CFA, or the Consumer Federation of America, had reported, some lenders who give loans of up to $2,500 would demand for repayment in just 30 days. If these would not be paid within this period, the customers would be paying more monthly interest rate of about 25 percent. Then it would become a mean cycle of payment of ballooning rates until the customers have the balance that is relatively high that they could not possibly pay them anymore.

In the end, they would have to agree for their cars to be taken away. After repossession, some lenders could sell your car and take all the proceeds. It would be just like renting the car with high charges.

The Power of the Lending Companies

The lending companies had been able to get around with all of these things because of the slack laws that authorize them. This industry is supporting the campaigns of politicians and had been able to lobby for laws that would give them much freedom to prey upon the customers. The recent of it is lobbying for state laws to legalize title loans without rate caps and adequate protection. This would lessen the control of the government for higher rates and unfair provisions that would definitely be advantageous to the lenders.

Knowing all of these things, it would not be wise to have an auto title loan. Look for better options for you to have that dream car of yours.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article keywords: auto loans, auto title loans, buying car

Article Source: http://www.articles2k.com

Mark Robinson writes for Auto-Loans.GuideFin.com. Visit his website for information about auto title loans.

Top Loans Articles
1). How To Do A Credit Card Debt Consolidation By : Nicky Pilkington Credit card debt consolidation allows you to pay your current debts in 3-6 years. Under a debt consolidation plan, terms and conditions change. The purpose of debt consolidation is to speed up your paying time and at the same time makes lower monthly bills.
2). Deciphering Your Credit Score By : Lee Dobbins Your credit effects many parts of your daily life, but do you know what your score is?
3). Selecting The Best Potential Equity Refinancing Package By : Emanuele Allenti Regardless of what commercials claim, many home equity loans have transaction charges, point fees, closing costs, and other charges attached. Few lenders offer borrowers option for refinancing; however, the lenders bury the stipulations in the fine print.
4). What Is A Low APR Credit Card? By : Nicky Pilkington Shopping had never been lousy since the advent of credit cards. Since then, people had always been indulging into various cashless shopping due to the convenience of the credit card.
5). How Do You Accept Credit Card: Let Me Count The Ways By : Nicky Pilkington Nowadays, everything seems to revolve around plastics. That is, more and more people are finding credit cards as the most convenient way to shopping, whether it is online or not.
6). Intro to Pay Day Loans By : Jeffrey Cash Payday loans are relatively small, short-term, unsecured, consumer loans. Consumers apply for payday loans through the Internet, with loans ranging from $100-$500. If approved, the loan amount is then wired overnight into the applicant�s checking account.
7). Sallie Mae Loan Consolidation Explained By : Ken Charnely When your student loans get the best of you and you�re wondering how you�re ever going to get out from under all that debt, take a look at loan consolidation. It may be the answer to a number of your problems.
8). How a Government Loan Can Repair Your Credit By : Dagmar Wilson There are government loans available that help people start a new business, loans for single parents, loans for education and so on. The government offers loans to the special individuals and often has 0% interest or low interest against the loans.
9). Read the Fine Print of Mortgage Indemnity 100% Equity Loans By : Emanuele Allenti Indemnity is an insurance applied to equity loans, which covers the lender in the event the borrower should default on the repayments. The indemnity is usually applied when the home equity is lower than the amount owed on the pending mortgage.
10). How Credit Card Points are Earned By : Nicky Pilkington Credit card companies offer varying benefits and promotions to entice their customers to use their credit cards not only in their everyday purchases but also for major buying decisions.

New Loans Articles
1). Home Equity Loans as a Source of Funds By : Gerald Greene For many Americans home equity loans have become a frequent source of additional funds. This has worked out well for many borrowers in a raising real estate market. However, how would they fare if the market boom of recent years is over?
2). Secured Loans � An Overview By : Joseph Kenny A secured loan is one of the most basic loans you can get. These types of loans are typically only given when collateral has been secured. Many lenders see secured loans as being a safe investment, and they are often given to customers who apply for them and have some form of collateral. The collateral for these loans could include your home or car.
3). Credit Card Debt Consolidation Loans By : Connie Barker Credit cards can be both a blessing and a curse. While they are very nice to have and can come in handy when an emergency arises, they can also get one into a lot of financial trouble. This kind of financial trouble is not all that easy to get out of. Most people consider credit cards to be a free money spree of shopping and that is where the problem lies in most cases.
4). Getting A Loan With Bad Credit By : Connie Barker Mortgages, credit cards, personal loans, refinance loans and auto loans, if you have bad credit you can still get any one or all of these types of financial assistance. Many lenders these days are realizing that the days of a perfect credit score are over for the average person. These days, life happens and because of this more and more banks and lenders are taking a more compassionate approach to lending money or approving credit cards.
5). Fulfill All Your Dreams With A Guide To Secured Personal Loans By : Amanda Thompson Everyone has some dreams. You might dream of having your own house or owning a car. You want to make your daughter�s wedding a rememberable moment. But lack of funds has been stopping you from doing so. If you find yourself in a similar situation, you should opt for secured personal loans. Secured personal loans are capable of meeting all the requirements of a common man.
6). Transform your dreams into reality with personal loans UK By : Amanda Thompson Today with a rise in the living standard of people, inadequacy of funds has created a problem. Just because you are short of money does not mean that you should be deprived of the basic necessities of life. Living a comfortable life has become the prime necessity for the UK residents nowadays. Opting for personal loans UK would be a wise decision if you are working day and night to fulfill your wishes.
7). Take hold of your finances with consolidation debt rate By : Alex Jonnes Consolidation debt rate is the rate of interest that a borrower is charged on a debt consolidation loan in order to get rid of multiple debts. The interest rate however varies from lender to lender. Your credit score also determines the rate of interest charged on the loan. Credit score as rated by FICO is a three-digit rating that is based on your financial history.
8). Take hold of your finances with consolidation debt rate By : Alex Jonnes Consolidation debt rate is the rate of interest that a borrower is charged on a debt consolidation loan in order to get rid of multiple debts. The interest rate however varies from lender to lender. Your credit score also determines the rate of interest charged on the loan. Credit score as rated by FICO is a three-digit rating that is based on your financial history.
9). Achieve Everything With Bad Credit Personal Loans By : Peter Taylor Loans in today�s world are a great help to people in fact it would be almost impossible to think of a world without giving and receiving of the loans. Loans are a great help to people these days as well and one of the popular options is that of the personal loans. Personal loans are a greater help to people who have had bad credit history i.e. people like: � CCJs � IVAs � Defaults � Arrears � Late payments � People who have filled for bankruptcy People with these profiles are considered to be ones who have bad credit history.
10). Plug The Gap With Bad Credit Bridging Loans By : Peter Taylor If life went smoothly and all things actually according to plan then it would all be so wonderful. But life is full of surprises and things rarely go as initially planned. A requirement can crop up anytime it could be one related to finances or one which asks us questions relating to other factors of life. A proper way to deal with unexpected financial difficulties is by bridging loans.

� 2006 articles2k.com - Privacy Policy