How many of these sources of credit have you used?  Credit card?  Home equity line of credit?  Auto loan?  Signature loan?  How about an auto title loan?

Once upon a time, in the United States years ago, credit was plentiful.  Credit card companies and banks were loaning money.  If you had a good credit report, you could get cash--emergency cash, when you needed it.  Today's credit markets are way different.  Sources of emergency cash have dried up.  That's where you may have missed one source of funds that can help during a downturn.  An auto title loan will give you quick emergency cash for whatever need.

There are risks with auto title loans.  The biggest risk is losing your transportation by failing to pay back the loan.  It might not be a bad idea to think about the issues surrounding all forms of credit before you find yourself needing to draw upon that source of emergency cash.

Auto title loans are another way to get short term ready cash for your needs. Your credit score doesn't impact the funds you receive.  The money you can get comes from your car's condition.  Real simple.  Understand when you apply for one of these loans, you'll likely get far less money than you think your car is worth.  Think of it as a "risk premium" the title lender is holding in their pocket in case you default on the note. If you have a job, own your vehicle with clear title, have an address, and are 18 or older, you are eligible in most places for an auto title loan.

These are clearly emergency, last stand, kind of loans.  You are putting a good deal at risk when you take the loan.  Make sure you understand what is all involved.   Check the repayment rules.  Is there a pre-pay penalty?  What amount of interest are you being charged?  When is the payment due?  When do you get your title back?  What's the total cost of credit?  What happens if you DON'T pay the loan back?  All these questions need to be top of mind when applying for help in this way.

Getting money using an auto title loan need not be a big problem if you know what questions to ask, and understand the risks involved.  When people are up against very difficult problems, especially with money, we often don't ask the right questions.  I hope this article gave you the ammunition you need to understand your rights and what can happen to you financially in these transactions.

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