Cash Crisis? Title Loan to the Rescue

It's the middle of the month, you are short on cash and there is an urgent need for cash to pay medical bills and buy medicines. In such a situation where do you go and whom do you turn to? You can opt for Title loans.

Title loans are offered to individuals for a short time-frame, e.g., for two weeks and they can be extended for up to a month. Individuals who apply for the loan should be able to provide collaterals like any vehicle owned by them, and they have to hand over the keys of the vehicle at the beginning of the loan. Title loans can be taken for a number of reasons like to pay grocery bills, utility bills, for business expenses or to buy some assets at auctions.

Title loans have their pros and cons. One of the positive aspects is they are unsecured loans given for a short period of time. Most of us hesitate to apply for loans if we have a bad credit history but for title loans you need not worry about it.

The loan gets processed quickly as the amount of credit checks done is very little or none at all. Loans can be availed for small as well as big amounts; the amount can vary depending on the needs.

As for the negative aspect, title loans have a very high interest rate due to its easy availability and low checks. There is also the probability that the vehicle given as collateral can be forfeited by the lender if there is failure to repay the loan.

Although it has a few drawbacks the loan is helpful, it lets you fulfill your responsibilities and doesn't break your bank accounts. At the end of the day, the onus is on you to think carefully and make a wise decision.

Alisha Delphi holds a degree in Economics and Commerce from USC. She started out as a financial advisor with a bank and has moved on to become a loan consultant with more than ten years of experience. Her key areas are auto title loans, car pawn and pink slip loans.