People have pre-conceived notions when they hear “pawn shop.” What most people do not realize is these companies provide instant cash solutions for those who are in need จำนำรถ. This practice leads all the way back to the time of the Ancient Greeks and Romans. Despite the stereotypes, it is still around because it works for most people. You will find these shops across the nation and in several countries across the globe.
These establishments offer quick loans for small collaterals, which are in the form of the pawned items. Clients have the option to buy back the items within a specified time. Dealers usually give only a fraction of the item’s actual value. For example, if you pawn a diamond ring that is worth $2000, the dealer may give you $200- $250 for this. In some ways, this service is comparable to a collateral loan since you give something in return to get money.
Most operations vary when it comes to interest rates and buy back options. Some shops only set 1% interest rate on the first week and demand higher interest the following weeks. Others offer a flat interest rate regardless when the client buys back the pawned item. There are also some differences in redemption periods. Most shops can have it as short as a month with option to extend, while others may allow longer periods. They may charge you extra interest for the extension.
Another way to get money from these shops is through consignment. This is when the shops sell the item to a third party. In cases like this, you only receive money when the broker sells the item. The division of share depends on the agreement. You may also choose to sell pieces directly to the dealer. They usually add your item to their showcase, and give you instant cash.
When you apply for an auto title loan, you’ll have to show proof that you hold the title of your vehicle. It is important that your vehicle has a clear title and that your car loan is paid off or nearly paid off. The debt is secured by the auto title or pink slip, and the vehicle can be repossessed if you default on the loan.
Some lenders may also require proof of income and/or conduct a credit check, bad credit does not disqualify you from getting approved. Auto title loans are typically considered subprime because they cater primarily to people with bad credit and/or low income, and they usually charge higher interest rates than conventional bank loans.
How much can you borrow with Auto Title Loans?
The amount you can borrow will depend on the value of your vehicle, which is based on its wholesale price. Before you approach a lender, you need to assess the value of your car. The Kelley Blue Book (KBB) is a popular resource to determine a used car’s value. This online research tool lets you search for your car’s make, model and year as well as add the appropriate options to calculate the vehicle’s value.
Estimating your vehicle’s worth will help you ensure that you can borrow the maximum amount possible on your car equity. When you use the KBB valuation as a baseline, you can accurately assess the estimated pricing for your used car.
The trade-in value (sometime equal to the wholesale value of the vehicle) will be the most instructive when you’re seeking a title loan. Lenders will factor in this calculation to determine how much of that value they are willing to lend in cash. Most lenders will offer from 25 to 50 percent of the value of the vehicle. This is because the lender has to ensure that they cover the cost of the loan, should they have to repossess and sell off the vehicle.
Different states have varying laws about how lenders can structure their auto title loans. In California, the law imposes interest rate caps on small loans up to $2,500. However, it is possible to borrow money in excess of $2,500, if the collateral vehicle has sufficient value. In these situations, lenders will typically charge higher interest rates.
There are lots of things in life that can kill your credit score. Slipping behind on your bills. Losing track of your credit card statements (or just plain losing them!). Applying for too many loans, opening too many credit accounts. You’ve heard the spiel. You know the story. But do you know how much damage your car insurance coverage (or lack thereof) can do to that all important three digit number?
If you’re sick and tired of reading about your credit score, what’s wrong with your credit score and ways to improve your credit score, it’s all good. You’re certainly not the only one. It seems like you can’t even turn around these days without practically tripping over it. You need good credit to get a loan, a house, a job, a car. Before too much longer you’re going to need to flash your credit score before you’ll be able to walk into today’s upscale boutiques! Credit’s important, and it’s up to you to take care of it.
Once upon a time drivers would find the nearest car insurance companies, choose two or three, talk to an agent, find out which one would cut them the best insurance rates and stay with that company for the rest of their lives. While there’s something to be said about company loyalty (and long term customer discounts) there’s something to be said about basking in the light of the benefits and goodies that today’s insurance companies are using to lure in new drivers and expand their clientele.
Let’s face it. If you’re sticking with the same car insurance company, you’re probably paying too much. Every car insurance company has its own policies when it comes to discounts, coverage levels, etc., etc. There’s no such thing as one size fits all car insurance, and it’s up to you to find the one that’s right for you. Make sure you’re doing it the right way, however, or the damage to your checkbook, your credit score and your financial future could be more than you can bear.
Did you know that every time your car insurance policy cancels for a non-payment of your premiums, your insurance provider reports it to the proper authorities? In plain English, that means they’re going to run out and tell Experian, Equifax and TransUnion, the terrible trio in the world of credit reporting, all about it. Not paying your bills does bad, bad things to your credit score.
Then there’s the part where you suddenly become a high risk driver because they assume that you’re driving around uninsured. It really is a nasty state of affairs. It’s so much easier to just pick up the phone as soon as you find out you’re not really saving hundreds of dollars a year and let your current insurance provider know you need to cancel your policy and when. It’s only a phone call. You make them every day. And this one has a much longer lasting effect on your future than the pizza you ordered for dinner last night!
Most car-shopping experiences are filled with myriad questions pertaining to the make, model, color, and options for their purchase. But what about questions pertaining to your affordability, the interest rate you will have to pay, and whether zero percent or cash back is the better option? Getting the best deal for your money on a new or used car is at times quite painful. It not only requires a lot of research but also some smart bargaining to shift the deal in your direction. Dealers and lenders offer a variety of loan terms and payment schedules that are often lucrative but if chosen inappropriately, may lead to bankruptcy.
Ironically, the high interest epidemic has traditionally hit self-employed and hard-working low-income/fixed-income folks more often than others, rendering such individuals apathetic as a sense of control over one’s own life is often tied to income security and the chance to earn more. A growing number of Americans who find themselves in a financial bind are turning to car title loans for financing their dream car. Though a source of quick money, these car title loans have eventually ended up costing them their vehicle, and often the most valuable thing they own.
Car title loans are small loans secured by a borrower’s vehicle that typically have triple digit interest rates. In an effort to sidestep laws and other protections, title lenders sometimes refer to such loans as “sales and leasebacks,” “title pawns,” or “motor vehicle equity lines of credit.” Title loans drag low- and moderate-income borrowers into a cycle of debt that results in tremendous expenses and can strip borrowers of their most valuable possession. Losing a car because of a title loan can make it impossible for borrowers to keep a job, attend school, or obtain health care.
The auto credit industry has a very strong lobby everywhere, and most consumer advocates say it will be tough to get something accomplished unless more politicians are involved. With no laws in place, you will find uncapped interest rates, some as high as 1200 percent.
Sometimes desperate times call for desperate measures. But title loans are not the only alternative. Bad credit auto loans can also do the legwork for you. Lenders of bad credit car loans usually have relationships with numerous other auto finance institutions and dealers who specialize in providing auto loans for people with bad credit histories. Many dealers and lenders offer bad credit car financing for new and used cars. If you suffer from a history of credit problems whether it is late payment, delinquencies, foreclosures, even bankruptcies you can still get car financed by such institutions offering to lend.