There are various media entities and consumer rights groups who question car title loans. However, they typically miss a key point – need.

Six percent of car title loan customers use their funds for shopping or entertainment. Nearly 87 percent of them report using such funds for unexpected expenses – meaning they have serious financial issues to deal with on a short term basis. Thus, most car title loan customers need to borrow money.

Traditional Lenders Don’t Meet All Needs

If would be great if everyone could get loans from traditional lenders, but that’s now how the lending world works. Continue reading →

During recent years, there have been numerous reports of an increase in utilities being cut off. This can be expected, as the economic downturn has led to job losses and other economic problems – meaning that Americans are having a tougher time paying bills than in past years.

If you face having your utilities cut off, you are probably in financial trouble. You may have lost your job or have another unexpected problem that has reduced your ability to make ends meet. Now, you may be facing having your water, electricity, gas or another utility shut off. Continue reading →

Over the past few years, lending regulations have become more burdensome. As a result, it is more difficult to qualify for a loan in general.

With this in mind, self employed individuals may find it even more difficult to get a loan these days. This is because traditional lenders tend to prefer those with a steady income that is easily provable. As a self-employed individual, you probably don’t have a regular paycheck coming in and your income likely fluctuates from month to month, so you will be seen as a greater risk in many cases. Continue reading →

When traveling around Los Angeles, you probably see banks in every part of town. Of course, you are free to do business with a bank and try to get a loan. That’s great if you like dealing with banks and have good credit, but what if you don’t?

You Can Borrow Money From Your Vehicle

You may not know this, but you can borrow money from your vehicle. No, this doesn’t mean that you should go outside and start negotiating with your vehicle. Unless you have the Knight Rider car, it won’t talk to you. Besides, you may get some odd looks from your neighbors if they see you doing this! Continue reading →

If you are in the market for a loan, chances are that you have a good reason for it. Whether you need money to pay off a medical bill, keep the water running, put food on the table or for any other important reason, your vehicle can be used as a source of funding. You can either sell it or borrow against it. Which is better?

Selling Your Vehicle

Suppose that you own a 2005 Toyota Corolla that has been driven normally – meaning about 12,000 miles per year with normal wear and tear. According to Kelly Blue Book, the car is worth $8,364. That’s enough to pay off almost any bill that you could possibly have. Sounds great, right? Continue reading →

Let’s face it, jobs aren’t easy to come by these days. The economy has been described as the worst since the Great Depression. That’s not good at all.

Unfortunately, many Californians have not been able to escape this bleak economic reality. In fact, California is among the worst states in terms of unemployment. According to the Bureau of Labor Statistics, the unemployment rate in California is 11.1 percent, giving it the second-worst unemployment rate in the United States. This means that 11.1 percent of Californians who seek employment cannot find it. Thus, if you live in California, chances are that you and/or someone you know cannot find a job. Continue reading →

You may have seen television ads about title loans, car title loans, pink slip loan or u-drive loans. Each of these is a name for a common item – a loan against your vehicle.

Now, you may wonder what a title loan is. Let’s take a look at some useful facts about title loans. Continue reading →

If you own a home and a vehicle, each can be used as collateral to obtain a loan. A loan that uses your home as collateral is called a “Home equity loan“. A loan that uses your vehicle as collateral is called a “Car title loan“.

As you may imagine, such loans differ in multiple ways. Let’s explore the differences between each type of loan. Continue reading →

Car title loans are an excellent way to get quick money when you need it. From the time you walk in to the time you have your cash is generally around an hour. That’s faster than any type of loan that I know of.

However, before you take a car title loan, you may consider other options. Let’s explore some of them and why title loans are better. Continue reading →

If you need money and have plenty of time to wait, a bank can give you a loan. However, if you are strapped for time and can’t wait days or weeks for a bank to process your loan application, a car title loan will work for you.

With a car title loan, you’ll pledge your vehicle’s title as collateral. This doesn’t mean that you’ll have to give up your vehicle. In most cases, you’ll just hand over the title temporarily until the loan is paid off. Continue reading →

Times are rough for many Americans. In fact, according to the Bureau of Labor Statistics, the most recent national unemployment rate is 8.5 percent. That’s nearly 3 percent higher than the historical average of 5.7 percent and just over 2 points below the historical high of 10.8 percent (source: Tradingeconomics.com). In other words, times are much harder now than they have been in the past.

If you find yourself among the nation’s unemployed, you may be frustrated with your job search. With a high amount of workers to choose from, employers can be very selective with whom they hire and offer lower wages, as well. Even if you are great at your profession, it’s often a world of who you know, not what you know, so you may have a difficult time finding a job. Thus, you may not know where to turn for money. Continue reading →

Popular belief is that people who take out car title loans and other non-traditional loans are all inner-city, unemployed or minimum-wage workers. While there is nothing wrong with those people, this is far from the truth.

According to the Cato institute, the American Association of Responsible Auto Lenders (AARAL) reports that a typical member’s customer is 44 years old and has an annual household income of over $50,000. As the US Census Bureau reports the median annual household income as just over $50,000, that places the average title loan customer in the middle of the pack in terms of household income – not near the bottom, like many people would have you believe. Continue reading →

While driving down the road, you probably see many of the familiar businesses that are advertised all over. You may see Wal-Mart, Target, Shell, McDonalds and various other household names. However, if you pay attention, you’ll notice that most of the businesses that you see are small businesses.

According to the Small Business Administration, 99.9 percent of business in the United States in 2009 were small businesses. This means that, of the 27.5 million businesses out there, approximately 27,472,500 of them are small businesses. That represents a huge market of potential borrowers. Continue reading →

Most banks do not lend relatively small amounts of money out. Sure, that water bill that is now at $500 may seem like a lot to you, but your bank probably won’t see it that way. They’d rather focus on larger customers.

Where does this leave you if you need just enough to cover a bill? Maybe you need to keep your water running or pay your tuition to stay in school. Maybe you are just plain out of money and need money to buy groceries. Whatever the case may be, the reluctance of banks to lend out money in such situations is a major pitfall in the financial world. It leaves some consumers, such as yourself, hanging out to dry. Continue reading →

A common perception of title loan customers is that they are fools who can’t control their spending. Some believe that they’ll go out and buy unnecessary items like jewelry or spend it all on entertainment.

While the above is true in some cases, it represents a very small percentage of title loan customers. According to the Cato Institute, prominent Economist Jonathan Zinman found that payday loan consumers – who are the same consumers that would be interested in title loans – primarily use their funds for bills, groceries, debt service and emergencies. As payday loan customers and title loan customers go hand-in-hand, it is reasonable to assume that most title loan customers use their loans for legitimate reasons. Continue reading →

A common misconception is that your vehicle will be repossessed if you get a title loan. This is because the lender will use your vehicle as collateral for the loan. If you don’t pay, they’ll have it repossessed. That’s it – your vehicle will be gone, right? Not exactly.

According to the Cato Institute, 14 to 17 percent of title loans default. To put this in simpler terms, if you and 99 others from your community each took out a title loan, 14 to 17 of you wouldn’t pay them back properly. Over 80 of you would do just fine. Continue reading →

Sometimes a second vehicle is necessary. Maybe your spouse just landed a job and needs a vehicle to get to and from work. Maybe you need a beat-up pickup truck to haul equipment in, but don’t want that to be your primary vehicle. Whatever the case may be, you will have to find a way to pay for the desired vehicle.

You can roll your dice with the bank and hope that they grant you a loan. They’ll run a credit check, meaning that you probably won’t get a loan unless you have a solid credit history. You’ll have to wait days or even weeks for a decision, leaving you without that extra vehicle, which may have become a necessity by that point. Continue reading →

If you are a young adult, you probably have little to no credit. This will particularly be the case if you paid cash for your vehicle, as an auto loan would have helped build your credit. That can be a huge problem if you would like to borrow money.

Suppose that you have an important bill due soon and don’t have the cash on hand to pay it. Maybe you owe your roommate money for rent or maybe you racked up a huge bill on your mobile phone. Whatever the case may be, you probably just want to get that bill paid and keep collectors off your back. Continue reading →

If you need quick cash, a title loan is a viable option. However, you may wonder if you are going to have to jump through hoops to get such a loan. After all, if banks won’t lend you money, will anyone else want to?

Let’s take a look at whether or not it is difficult to obtain a title loan.

Who Can Get a Title Loan?

According to Investopedia, most companies will not lend you money unless you own your vehicle outright. This means that your car has been paid in full and there is no money left on the loan. So, if you own your vehicle, you’ll probably qualify for a title loan. It’s that simple. Continue reading →

High interest rates are a hot button topic in the title loan business. Some may suggest that you steer clear of such loans because of them.

So, how much interest will you actually pay on a title loan? What will happen if you don’t pay it off on time? Is it worth it? Let’s examine the answers to these questions below.

How Much Interest Will I Pay?

According to Bankrate.com, title loans typically cost the borrower approximately 25 percent in interest over 30 days. Note that this interest rate will add a lot to your payment quickly if you don’t pay your bill off on time.  Continue reading →