How Title Loans Work

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In our last blog post we discussed title loans. We wanted to go a little more in-depth about title loans in this blog post. Please note, some of this information was taken from The Cali Loan Company.

A title is an official document that proves or represents ownership over a certain asset. A title loan therefore is a loan that requires you to place the title of a property that you own (usually a car) for use as a collateral or security to get a loan. The title must be free from administrative or judicial restrictions for it to be able to help you get financing.

The lender holds this title of your property until such a time when either you clear the loan or you fail to meet your obligations. In addition to verifying the collateral submitted, the lender also verifies that the borrower has stable employment or has some source of regular income. Should the borrower fail to pay the loan as agreed, the law allows the lender to sell the asset in order to recover his money.

A title loan is one of the best ways to get faster money (usually within a day), without regard of your credit score since this type of loan does usually not perform a credit check. The loan amount, however, is less than the value of the property and it qualifies you to about 30% to 50% of the original amount of the title of the property.

This kind of credit is transient and has a reimbursement time of under 60 days. It additionally has a tendency to have substantially higher interest rates compared to other loans. The interest rate changes from bank to loan specialist and can be somewhere around 100% and 350%. It is therefore imperative for you to reimburse the aggravated credit sum inside the constrained compass of time to recuperate your title as well as to stay away from exceedingly high interest rates. Below you will read about the good, the bad, and the ugly about title loans:

Benefits of Title Loans
• If you have a bad credit standing, you can still get a loan as your credit score will not be looked into when you apply for the loan.
• It is a perfect type of loan if you need emergency funding to meet pressing obligations.
• It is also perfect if you require a small amount of money as it allows you to be able to afford to pay on a short period of time.

Dangers of Using Title Loans
• Debt is an inescapable fact in our lives and there are a lot of ways that we can repay our debts. While title loans allow you easy access to money to purchase what you want, they come with high interest to the borrower compared to other types of loans. They also have a short repayment period, usually one month, from the time the loan was first obtained.
• Another danger is that there is no equity between the value of the loan and the value of the title of the property. This means that you can lose a more valuable property if you are unable to pay back the loan. Therefore, you must thoroughly consider your decision of getting a title loan.

This type of loan is very convenient if you know your responsibilities well and also make payments diligently to avoid seizure of your property. Therefore, ensure that you are capable of repaying this loan before you apply for it.

Tips for Dealing with Tough Financial Times

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Challenging financial times have people in a monetary bind and doing things they have not done before. There are those who are living paycheck-to-paycheck when they all of a sudden get struck with a financial emergency.

What would you do?

Some people count on “title loans” to provide them with quick cash to tide them over up until next paycheck. Are title loans a good option when you’re tight on money or are they a rip-off? And how exactly do they work?

How automobile title loans work

As the name suggests, an individual can borrow cash with their car title as collateral. Usually with these loans, there’s no credit check and your application is processed quickly. They’re mainly utilized as cash loan, and their term is generally 30 days. See Longhorn Lending: Best Car Title Loans in Texas for more information about loan terms and applications.

The maximum amount somebody can obtain varies, however it’s normally not more than 50% of the car’s value. To get approved for the loan, the customer needs to own the automobile outright. After evaluating the value with an examination, there is usually a percentage of documentation and after that the cash is lent.

As with payday advance, there are term extensions that some customers can secure, however many times this will result in a cycle of financial obligation with the continuous threat of repossession.

  • Big costs and rate of interest

Title loans are not low-cost. They tend to have higher interest rates than banks, credit cards, and in some cases, payday loans. As always, there’s a high rate for fast cash, and it’s typically to the customer’s detriment.

When individuals get such loans they might see the amount due on the loan, however if they determined the APR it can be over 100%! Some states, like Florida and Illinois, have placed limitations on the rate of interest and charges charged by these business. Completion outcome equals rates that are still quite high– often around 30 %– but more reasonable than in other locations.

  • Too much threat

Putting your car on the line is leaving yourself open to a financially damaging circumstance. What if an emergency happens and you lose your automobile? Not only will you be stuck without transport, but you’ll have given up your car in return for only a portion of its value.

I think that if somebody is having a difficult time paying costs to the point that they have to get a title loan, there is a likelihood that they cannot afford to replace their car if they lose it.

Think they’ll go after you or they’ll cut you a break? Some title loan providers need GPS monitoring, and might ask you for a copy of your car’s secrets. Lenders do not provide money unless they expect to get it back.

  • Ways to stay clear of taking an automobile title loan

In general terms, you can stay clear of financial disasters, or at least minimize their impact, by planning ahead and building up an emergency fund. Remove excess costs temporarily or permanently from your spending plan. Pack your lunch, stay at home instead of going to the movies, and cut the cable costs if you have to– any of these are far better than endangering your financial future.

If you cannot cut your budget any more, then think about taking on a second job as an added source of income. Be a waiter or deliver pizzas– do whatever required to get more cash into your budget plan.

Save up a comfy cushion of at least 3-6 months worth of your expenditures and you must be able to ride out most emergency situations that appear. If you’re not comfy at that level, work your job approximately 12 months worth of expenses. Save money in a dedicated savings account where you’ll be able to keep it easily accessible but withstand the temptation of dipping into it.

What if you need the cash now? Numerous of the above suggestions use. Cut expenses, boost income, and so on. If that’s inadequate, check with your bank for a short-term loan, sell some of your things, compare rates against charge card cash advances, or get a peer-to-peer (P2P) loan from an attire like Loaning Club. Whatever you do, please think twice prior to getting a car title loan.

If you are in dire need of quick cash, then check out title loans Houston. Longhorn Lending is a very prominent and respected title loan lender in Texas.

Establishing Good Money Habits

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There is no way to avoid dealing with money and finances these days. You should know as much as you can about both so that you can make good financial choices. The information below will supply advice which will further your learning about making sound financial decisions.

Before you create your budget, figure out exactly where the money will be going. Figure out your household expenses and how much income you bring in. For each dollar you spend, you should be able to account for it. Do not spend cash that you don’t have.

You should then proceed to establishing a list of your expenses. Write down everything your family spends. Do not leave out non-monthly expenses like payment of insurance premiums, or the amount of money you usually put towards things such as tires for your car and oil changes. Your expenditure list should also include all money spent on food, including cappuccinos and dining out. Make sure no expense, whether it’s a payment towards a storage unit or a small fee you pay to have streaming movies, is left off the list. You want the list to be as complete as possible.

Knowing where your money comes from and where it goes is essential for creating a budget. The very first step is to reduce or stop completely expenditures that are not very essential in your day to day life, for example entertainment costs. Not only will you be saving lots of money, but you will also be saving a lot of the time you used to spend standing in line or maybe sitting at the drive-through. Focusing on removing these small expenses from your budget can make a real impact on your finances.

Making improvements to your house and appliances can help reduce your utility bills. Make sure you have modern windows as well, these will save on your electrical costs. An on-demand hot water tank is a good way to reduce spending. To reduce your water bill, repair any leaks in your plumbing or hire a plumber to do it for you. Run only full loads through the dishwasher so that you get the most out of each cycle.

It is worth the investment to buy new products that utilize advancements in technology because you’ll save money on your energy bill each month.

You can easily reduce your utility expenses by changing your roof and upgrading the insulation. When your home is well insulated, you save tons and tons of money with heating and cooling.

These ideas will help you be more successful with cash flow, and you’ll be able to keep your finances in check. It is good to take note that the cash that you spend on improving your home will soon save you money in the long run in the form of lower utility bills. By lowering your utility bills you can find some wiggle room in your budget.

Tips for Online Banking

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Online banking is one of the most convenient and time saving type of banking, however, just like you have heard people being mugged for their credit cards and many other frauds on their cards. The risks about online banking are also many which require one to be very vigilant and careful. The type of banking is fraught with many risks and vulnerability; here are some safety and precautionary measures to adhere to in order to make it as safe as possible.

1) Two Factors Authentication Account:

Try to find out which bank offers some two types of account authentication online, many banks use small tools which can generate a temporary code which you can use together with other details. The code is valid for a very short time and expires immediately you finish your online transaction. This is a sure way to keep your online banking more safe than before.

2) Strong Password:

Strong password is another option that you can explore and make use of accordingly, when creating a password explore he option of long and mixed with both lower and upper case letters. Then include other figures and numerals to make it difficult to fake no matter what, avoid using common initials of your name or date of birth and such likes.

3) Secure Your PC or Any Device:

Make sure that you secure the device which you are using to do online transaction, whether it’s a PC, laptop or any other device make use of it properly and securely. Make use of very strong anti-virus software and turn on the fire wall that accessing your device becomes difficult, there are several ways of how you can secure your PC by the use of very secretive codes and passwords.

4) Avoid Clicking Suspicious Emails:

There could be emails which are purporting to be from your banker requiring certain personal information, you may receive suspicions emails which requires you send login information to your banker or identification details. Always be wary of such emails since they could just be fraudulent emails. Suspicious links may also be used by fraudsters to direct you to a site which looks like your banks, this is done so that before you realize it they have stolen your login details hence your money.

5) Access Your Bank Account Securely:

It’s always wise to use the server and reliable networks which you are familiar with, avoid using strange networks or servers to access your bank account online. Accessing your bank account using public cyber and other people’s offices which you aren’t sure of their security should be avoided, though it may not be possible to always access your account from home. But if you have to use remote location, make use of VPN (Virtual Private Network) to create an encrypted connection to your home or office server. This will make it difficult for fraudsters to access your network.

There are a number of vital tips for online banking which can be applied for total security, you need to log out immediately and remove the URL from browser when through. It also involves set your account to always be sensitive to suspicious attempts, frequent checking and monitoring is also important.