In a person’s life, there will come a time when he or she would require fast cash. This could be because of a medical emergency or unexpected job loss. Usually, people who need money immediately would borrow from a family member or friend. In the event that there is no one to borrow money from, the person can obtain a small loan from traditional lenders such as banks. Unfortunately, not everyone in need of fast cash qualify for a loan from banking institutions. Cash-strapped individuals with bad or poor credit are often deemed ineligible for small loans.
Say for instance that a Nashville resident needs money fast but is found ineligible for a bank loan. Where should the person get the financial resources needed? In the event that traditional lenders fail to accommodate a borrower, one option available to the individual is lending money from lenders that offer car title loans. A person who owns a car may use the vehicle to get the amount required. There are many car title loans Nashville lenders, so the borrower who lives in this city has many sources from which to get the fast cash.
A car title loan, also known as an auto title loan, is not the standard type of financing. This is because lending money this way is similar to an individual pawning his or her vehicle. In a car title loan, the borrower will sign over the title of the car to the lender to get the money; the vehicle will serve as collateral or security.
Car title loans Nashville lenders are an ideal source of funds for those who need emergency cash because they guarantee fast approval. With a car title loan, any Nashville resident who needs money right away can get money right away provided that he or she has the car title. Unlike other lenders, those that offer auto title loans do not run credit checks—that which usually makes the loan approval process longer. This means that people with bad credit can still get money despite their credit situation. More often than not, the only thing that these lenders require—aside from the auto title—is proof of income. Also, the borrower or the owner of the vehicle must be at least 18 years of age.
Anyone who is interested to approach any of the car title loans Nashville lenders should first know a few things before taking out an auto title loan. First, the vehicle to be used as a collateral must already be paid for: the original financing taken out to pay for the car must be settled. This is necessary because a car title loan will place a temporary lien on the car. Second, there is a high price to pay for getting emergency cash immediately, and that is in the form of high interest rates. The rates that come with car title loans are significantly higher than the rates of other loans. Lastly, all car title loans must be paid 30 full days after the money was given.
It is very important for borrowers to think about the last two things before they take out a car title loan. If they know that they are not capable of paying the amount within 30 days, particularly with a high interest rate, they must consider other sources to get money from. Getting a car title loan even when one is not in the position to settle it on time would result in the loss of the vehicle. On the other hand, if the borrower is certain he or she can pay for the amount and get the title of his or her car back, then there is no problem. The borrower can go online and immediately find the car title loans Nashville lender closest to his or her residence.