There has been much maligning of the short-term loaning practice known as Auto Title Loans and Payday Loans. Some US states have even outlawed the practice of Payday Loans, comparing the practice to “loan sharking”. It is my opinion that this is misguided. When a consumer has no credit or bad credit, where are they supposed to turn in the event of an emergency?
Since the whole world is on a debt-based fiat monetary standard, one’s credit rating determines the standard of living that each person can achieve. It’s an unfortunate circumstance, but that is the reality we live in. This is the world of ever decreasing purchasing power and ever increasing living expenses. The banking industry has been putting the screws to the average wage earner for a very long time. After the 2008 Banking Crisis, consumer credit has been more and more difficult to obtain. Since the advent of Quantitative Easing (QE), the cost to maintain a semblance of one’s living standard has become even more difficult. The answer for many people has been to turn to short-term credit using an auto title as collateral.
Unlike long-term credit, a short-term loan bears with it a higher interest rate than the average creditor is used to seeing. This is because of the heavy amount of risk the lender assumes. In most cases, the lender doesn’t demand a credit check, as with Auto Title Loans in San Diego. Loans are usually processed in short order, sometimes in one hour but usually the same day. The title of the car is used as collateral, all the while the borrower retains the use of their car. Each loan limit is determined by the value of the car. Here is a word of caution, understand your budget and what size loan you are able to afford. Many large scale title loan companies will attempt to offer a larger loan than the customer can repay. These companies have a repossession in mind. They operate on a large scale to repossess cars and make money through the resell.
The people at Auto Title Loans in San Diego have the business ethic of making money on the terms of the loan, not in repossession. The loan is amortized and they operate under license with the Department of Business Oversight. They are not in the business of offering “interest only” loans.
For many people, this service can be a life saver. Some have used auto title loans to consolidate debt or pay off medical expenses. One borrower used the service to get her mother out an abusive nursing home. If you have good credit, then by all means obtain a loan through the conventional process. An auto title loan is not for everyone. You may even consider selling your car instead of using the title as collateral.
For some of my readers, this article may seem a bit odd. Why is he pushing auto title loans? The answer is that I’m not pushing any type of lending service. I have been asked to consider this part of the lending industry with an honest viewpoint. Taking into account that we are all emancipated adults and should be mature enough to determine what may be needed for our individual circumstance, obtaining an auto title loan may be less risky than using your home as collateral. Consider losing your house, instead of your car in the event of a layoff or medical setback. We saw how that turned out in 2008.
If you have any further questions or are in the California area and are considering an auto title loan I have furnished the information below.
Auto Title Loans San Diego
9120 Judicial Dr. #7511
San Diego CA 92122