Wednesday, May 9, 2012

Car title loans - good idea?

Recently, I've read about car title loans. Are they a good idea?

One benefit is that they are available to anyone who owns title to a car. No credit checks are necessary, and no income needs to be verified. Another benefit is that you can get the money quickly and (at first) at a fairly low interest rate compared to a cash advance on a credit card.

But the downsides are huge. First of all, if you can't pay off the debt within the short amount of time you receive, the interest rate will skyrocket to well beyond credit card levels. And if you default on the loan, you lose your car. That's way too much risk for most people.

My advice if you need money fast? Sell something. Perhaps sell your car and get a cheaper one. Or sell some large household items over eBay or Craigslist. If you absolutely need a loan, try a credit union or local bank.

But if you still insist on looking for a car title loan, be sure to research all your options. Check in your area as well as over the Web - if you live in Oklahoma, do an internet search for "car title loans Oklahoma." Be sure to find what the interest rate and payback period is for the loan.

But be careful! My advice would be to look for another source of money before getting a car title loan.

(This is a sponsored post on behalf of Turbo Title Loan. Please see my disclosure policy for more information.)


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