Saturday, November 15, 2008

Auto Title Loans: Source of Funds in Cash Crisis

Auto Title Loans: Source of Funds in Cash Crisis

Do you own an automobile? Yes, then auto title loans can be a source of funds at any time of cash crisis. As long as you are entitled to your auto, auto title loans can work as a great wonder for you. No credit check is run nor does any necessity to place any collateral, the title of your auto is kept as collateral for the loan. You are still the owner of the entitled car to drive.

Auto title loans are intended for short-term usages. Their repayment dues are made within 14 days to a month of the loan on being issued. Interestingly if you are unable to pay off the loan amount, there is a provision of rolling over the loan repayment for another payment period. This mode of action, though, carries a large interest payment against the loan from defaulting. By rolling over the loan for a few more days, you could end up paying many times more the amount of the loan in interest and fees alone. Annual percentage rates for auto title loans are marginally very high.

For borrowers title loans are a very low financial risk, the loan amount is often taken out for far less than the value of their vehicles. You can get up to the fair market retail value of your auto with a title loan, though.

Motorcycle title loans can be a very high financial risk for consumers, especially those who borrow more money than they actually need. A single missed payment on this title loan could result in your car being repossessed at anytime. If your car is seized, the lender would charge an additional fund above the retail value of the auto to enable you to pay back the loan amount.

Depending on your circumstances, auto title loans breeze through to get hold of cash crisis. An auto title loan works differently. With this type of loan, you have to offer title of your car as collateral. This is often asked to provide a spare set of keys when the loan is granted. If he or she defaults on the loan, the car would be forfeited and sold to repay it.

By: Thomas Mark
Article Source: http://www.ArticleBiz.com

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