If you need a loan and you do not have the best credit, car title loans can be an easy way to get fast cash. Residents of North Carolina have many options at hand for obtaining a car title loan, and a quick glance through a phone directory will guide you to several local lending institutions.
Title loans are a financing option utilized most often by people who own their car, have a job, and are unable to secure a loan by other means. Sometimes people with poor credit apply for title loans. Most people are approved for a car title loan as long as they can provide proof of a job with sufficient income to make the payment, and the fact that they own their vehicle.
North Carolina residents should evaluate their need for a car title loan very carefully, as the interest rates can be extremely high. Like a payday loan, car title loans are advertised to people who have few other lending options and the interest rate can easily be in the triple digits. Therefore, those that have other options should consider using these in order to save themselves some money in the long run.
The repayment of the car title loan is often required to be made within one month, which puts the car owner in the precarious position of losing their vehicle if they cannot make the payment. For families who only have one car that takes them back and forth to work, the car is an essential part of their well-being, and this fact has to be carefully considered.
North Carolina has specific state laws that address car title loans, but it is imperative that you understand them before you obtain this type of financing. Car title loan companies are often the parties protected by the law, so be aware of your rights and read all of the fine print in the agreement to ensure that you do not have any surprises.
Many times the lending institution will ask the borrower to provide an extra set of keys to the car in the event of default. In this case, the car will be sold and the proceeds used to pay the loan. In the event there is excess money from the sale of the car, the lender may be entitled to keep it all instead of giving the driver back the difference, which can put the person in more financial constraints.
It is common practice of car title lenders to take advantage of state laws. Some claim the car owner pawned their vehicle to them and others state that the loan was a motor vehicle equity line of credit.
For the most part, car title loans should be avoided if you have means to any other sort of loan, but for those people with no choice, proceed carefully. Make sure you are able to make the required payments in time and of course make sure your reason for obtaining financing in the first place is a worthy endeavor.