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How Car Title Loans help Individuals

If you need a loan and need it fast, a car title loan can be just the thing that you need. We all need a little cash every now and then to pay bills, take care of the rent and any upcoming expenses. Although you can try and opt for a loan from a bank or credit union instead, short-term loans are usually hard to get because they come with numerous restrictions. Furthermore, if you have poor credit, securing a loan from a traditional lender is easier said than done, which leaves car title loans as one of the best alternatives for quick cash.

Car title loans get a bad rap owing to their lump sum repayments and elevated annual percentage rates. However, if you need money desperately, it can help you out when you have nowhere else to look. As a general rule of thumb, you should carry out extensive research to avoid the promises of predatory lenders. You should only settle for a car title loan from a socially responsible lender whose personal installment loans come with lower rates, longer terms, as well as easy to pay manageable payments.

It is also critical for you to pay your loan on time once your application is received to prevent your car from being repossessed if you are unable to pay it. While getting a car title loan is certainly a risky idea, there are some instances in which a car title loan can save your life. Here are some occasions where it is OK to get a car title loan:

When you have emergency Medical Bills

When you have emergency medical bills to sort out, a car title loan can help you find your footing. If you cannot wait until payday or do not have access to someone that can lend you the money, consider acquiring a car title loan from a reputable lender.

Emergency repairs

A lot of individuals choose to apply for car title loans when they have unexpected repairs such as disaster home renovations or car repair bills. Rather than wait for the issue to get worse, a car title loan can help you fix whatever that needs fixing so that you can concentrate on other more important things. Repair bills can get expensive and if they are not included in your daily budget, it can be difficult to manage.

Death of a family member

When a loved one passes away unexpectedly, a car title loan can help you give them the send off that they deserve. If you should need to travel to see a loved one in the hospital, a car title loan can also help you cover the expenses so that you can be there for them.

Laws that will stop Car Title Loans

As you can see there is a specific need for many individuals to have access to credit such as car title loans. Many states, California being the most recent, have introduced legislation that title loan lenders have stated will put them out of business.  I urge these states to work with the companies to come to a compromise.  Establish certain underwriting guidelines that will help protect both the consumer and the lender.