Basics of Cash Title Loans
To get a cash title loan, you go to the lender with something of value - often your vehicle. The lender decides how much cash to give you, and you promise to hand over the vehicle (or other collateral) if you don’t repay as agreed.
For more specifics, see How Car Title Loans Work
Cash Title Loan Amounts
In general, cash title loans are small loans. They’re a good deal for the lender, since they have a good chance of getting all their money back by selling the asset you pledge. This means that cash title loans are often not as advantageous for borrowers. You put a lot at risk for a small loan.
Cash Title Loan Problems
The main problem with cash title loans is that you can lose the asset you pledge as collateral, and you don’t get much in return. Yes, you get a little bit of money from cash title loans, but the risks are high.
For example, you might pledge your car for a cash title loan. What happens if you can’t pay as agreed? You’ll lose your car, and you may lose your ability to get to work and earn income (or get to job interviews and get back on your feet).
In addition, cash title loans are generally expensive. Before you use a cash title loan, explore all of the alternatives:
The Lowdown on Cash Title Loans
These loans should be a last resort. You may find that a cash title loan will get you out of a short term pinch, but you should try to avoid them.
Varieties of Cash Title Loans
Cash title loans go by a variety of names: