Car title loans let you access quick cash. Based on your car’s market value, you can obtain between $100 to $10000 to put your car title as collateral. Car Title Loans Memphis Tennessee offers back up to the lender in your car, which he can use when a borrower doesn’t pay. On average, a lender can get 25 percent per month as interest from a borrower, and thereby, APR becomes almost 300 percent. If you are wondering whether it is risky to obtain this loan or not, then it’s time to find out more about this facility.
When Car Title Loan is not risky:
If you need emergency cash and nothing works for you, then it’s the time when you should tap on the auto title loan. They offer you instant cash availability. As this loan is meeting your requirements, thereby it feels like a blessing when you are in dire need of cash. You approach the lender with a car title in your hand and alongside your car that gets inspected by an independent dealer. After assessing the car’s value, you get a quote for a loan amount. When your loan gets approved by the lender, you drive back to your home not only with the car but also with money. So, you get what you need, aka cash. Now when it comes to payment, then you opt for 30 days lump-sum payment, especially when you have a paycheck to come at the end of the month. However, what if you can’t pay back in 30 days? You can mitigate the risk of car possessions by signing up for an installment loan facility. You decide to pay back a significant loan amount in chunks with interest in a period of three to six months. If you see a big picture there, you realize that a car title loan is not risky when you are planning to pay off a loan back as per terms.
When a Car title loan becomes risky:
While you apply for car title loans Memphis Tennessee, then it’s a point where you should think whether you would pay back the loan on time. If you know that you won’t pay it off on time, you should consider getting a payday loan. An auto title loan is a risky choice when you have no intention of paying it on time. You should know that this loan comes with 30 days. When a borrower doesn’t pay it back during that time, the lender offers a roll-over option. Whatever you have paid will be deducted from the loan, and another loan will be created for you. At this time, you will have to pay the remaining principal plus interest and also charges.
Car title loans Memphis Tennessee are risky choices only when you can’t pay them timely. With an ARP rate of 300 percent, this loan turns into an expensive option and may take you to an ever-growing debt cycle. However, this loan isn’t risky when you have a full fledged plan to pay it back on time. Before you put your car as collateral for a loan, make sure you consider both risky and non-risky sides and then apply it.