Why a Car Title Loan is a Better Option than Borrowing from Friends


Friends are there to help you get started, to give you a push on your way. Or so we think. It?s hard to say anything negative about friends, and family, the ones who are always so quick to bail us out of ugly financial situations. Friends and family are usually quick to say ?of course!? that we can borrow money whenever we need it. Is this scenario too good to be true? Possibly. This article is going to explain the potential pitfalls of friend-loans and why a car title loan may be a far better idea. Let?s start by analyzing three types of personal lenders.

The Loving Parent: Of course, they are willing to bail their ?baby? out of trouble. Sometimes, however, we resist going to parents first for money troubles. Not only do we resent the idea of relapsing into childhood by asking a parent?s permission, but we also have to consider whether The Loving Parent can really afford to give us money in the first place. Not all parents are living well in retirement. You never know?they may be struggling just like you. What?s worse? To hear that they can?t afford to lend you money or to know that they?re lending you money that they can afford? This is why a car title loan may be a preferable option.

The Rich Aunt: Everyone has one of those rich aunts or uncles and ?of course!? they are always ready to lend a family or friend money. The drawback? They expect you to explain why this loan is necessary, and possibly, why you have messed things up yet again. The Rich Aunt scenario is always hard to deal with because of the class-separation dynamic going on. You need their money, they know it, and they expect you to cooperate with their rules; sometimes this process can be just as excruciating as a dealing with a bank! A car title loan offers you far more convenience and less frustration.

The Friend: Friends are there indeed, and if you go a day without paying them back their money they will let you know about it. Friends are not family so don?t be surprised to see friends become obsessive about getting their money back. Friends might also demand some sort of explanation before lending you money. The fact of the matter is that nobody really wants to give away money, but does is out of respect for you. When a person gives money to you, the dynamic in the relationship has changed drastically. You are at once, the friend or relative, and at the same time the person who owes them money. Everyone has conflicting emotions in this situation.

Many people prefer to avoid borrowing money from friends and family altogether and instead seek out a car title loan. A car title loan is a type of cash advance loan that is short-term in nature. This type of loan is supposed to be paid back in a matter of weeks, perhaps a month at the most. This is because the lender assumes this is a debt the borrower can easily payback with his or her next paycheck. Therefore, the qualifications for loan approval are lowered, the amount is increased and the waiting process is much shorter. You can actually be approved for a loan in a few hours and get your funds within a day. This is the fastest way to borrow money short of finding thousands of dollars in a mysterious suitcase.

However, there may be one catch. The lending company has to protect itself against fraudulent customers and deadbeats who have no intention of ever paying back the loan. Some lenders might require that you put forth collateral, such as your automobile, by handing them over a car title for loan. This doesn?t necessarily mean you will lose your car. Even if you are somehow unable to pay for your debt at the end of a 30-day period, the company may be able to finance the balance for you. This collateral is mainly to protect the company against total loss. If you are serious about paying back your debt then you may be able to get a loan even without a car. With collateral attached, you can seal the deal the same day you contact the company.

Interest rates are usually high for car title loan contracts, just as with any loan or credit account. However, because you are paying the loan off in less than a month, interest will be minimal, certainly not like that of credit card financing. If you are interested in a car title loan then look for a lending company online. You don?t have to be in a local region to take advantage of this opportunity. Approvals and electronic funds transfers can all be done online and within hours of submitting your application!