Although we are told that the financial crisis is over, many families are still in real difficulties. They have to face incredibly high bills and other unexpected financial emergencies that require cash immediately. However, in order to get finance, you generally need to have really good credit, and only very few people still have this nowadays. One option that is available, however, is to apply for the best car title loan Texas has to offer.
What Is the Best Car Title Loan Texas Has to Offer?
It is very important to understand, however, what car title loans actually are. They are designed to be a short term cash advance that is due to be paid back within a short period of time, usually one month. The interest rates are incredibly high due to the short-term nature of these loans. Before you apply, you should always consider what other options are out there for you.
Should You Just Apply for a Second Mortgage?
In the past, whenever we faced a financial emergency, we would take out a second mortgage on our homes. This process of actually having two mortgages on one property no longer exists. It may be possible to release the equity in your property, but this generally does require a good credit rating, even if that loan would be secured against your property. Unfortunately, traditional lending opportunities are almost unattainable nowadays.
The Benefits of Car Title Loans
There are many benefits to looking for the best car title loan Texas has to offer. The main benefit is that this type of loan is easy to obtain, regardless of your credit status. There are a number of requirements that you have to be able to meet in order to be considered, however. These include:
- You must have a vehicle that is registered in your name and you must possess the title deed.
- No other liens can be placed on the vehicle.
- You must be insured (generally fully comprehensive) and you must have a driver’s license.
- You must be employed and receive a regular salary.
Generally speaking, title loans in Texas can only be up to 50% of the current market value of your vehicle. This is to protect the lender in case you are unable to make repayments. They want to make sure that, if the worst came to the worst and they have to repossess your vehicle, they will be able to recoup the money the lent to you, the interest and any costs they incurred as a result.
Do make sure you spend some time comparing the different lenders that are out there. In most cases, you will have to hand over the title deed and a spare set of keys to the lender. However, some will even take possession of your vehicle for the duration of your loan, acting more like a pawnbroker than a lender. You must be aware of this in case you need your vehicle yourself.