No matter where in the world, there are always unexpected events that lead to an emergency, and for most emergencies, we need cash to solve them. To this, circumstances always arise where we need immediate money and most times; we ideally fall back to our savings to pull us through. However, the ideal route of saving for a rainy day is not always taken up by people, and when a rainy day does come, they are left to find ways to quickly put together the money. In a bid to immediately sought out cash, most people often turn to emergency cash loans. For most people, emergency cash loans are obtained from banks, friends, credit unions, and any other source that is available to them. One of such other sources is auto title loans.
In a scenario where you no longer have any other option to secure an emergency cash loan, an auto title loan is a last resort that can help you. An auto title loan is basically borrowing money against your car. That is a loan whereby the borrower's car title is used as collateral. It is often times a short term loan, and the borrower must be the outright owner of the car title to be used as collateral. Furthermore, to borrow with your car, there must be no other loans accrued to the car, that is you must have paid any loans used to purchase the car. However, some lenders do allow you to borrow despite you still paying off an auto purchase loan. Also, it should be noted that the amount one can borrow through this method, depends on the value of the car to be used. https://www.cartitleloanscalifornia.com/emergency-cash-loans-los-angeles/
However, it should be clearly noted that obtaining emergency cash through an auto title loan is not the best way to go. This is majorly due to the vicious circumstances surrounding the loan repayment. To this, the first point to note has already been stated above, and that is the time limit of auto title loans. Auto title loans are mainly for a short period of time; hence you don't have much time to raise money to pay back the loan. Also, the interest rates charged for auto title loans are most times on the high side. With all these factors, a grueling possibility that you may lose your car for good arises. The biggest problem that comes with emergency cash through auto title loans is losing your car. If you are unable to keep up or fully repay the lender, said lender has every right to take possession of your car, sell it and take his share. Hence, it is recommended that using the auto title loan scheme only be used as a last resort.
