Many people live paycheck to paycheck in today’s society. Soaring rents, rising gas prices and inflated food costs make it challenging for many people to simply make ends meet. If an unexpected health emergency or death in the family occurs, it can turn a person’s financial world upside down in an instant. If you have experienced an emergency situation and need fast cash, but do not have the credit needed to obtain a personal loan at a financial institution, you still have options. While the interest rates can be quite high, a car title loan or payday loan can help see you through your financial situation until you get back on your feet and are able to pay back the loan.

If you have a vehicle that is paid off, you can use your car as collateral to borrow money. Some title loans in Houston Tx can be secured for up to $10,000, but this is based on the value of your collateral. In many cases, you can secure a title loan for virtually any make and model of car, truck, van, motorcycle, boat, RV or ATV. To secure funding, you would simply bring in the vehicles you own outright, and the loan specialist will assess the vehicles to determine condition and value to be able to offer you a loan option based on your collateral. A contract is drawn up, and a repayment schedule is agreed upon and outlined explicitly in the paperwork. Car title loans generally come with a standard 30-day repayment schedule, but most title loan companies are flexible. You can expect to pay more interest, and sometimes at a higher cost, if you need an extended time frame for loan repayment.

Loan Depot Dollars, http://www.loandepotdollars.com/title-loans/, is an example of a company in Texas offering car title and payday loans. They have an online application and several locations, and they outline their fee schedule in clear terms. When you need fast cash, you can also choose to sell unwanted items of value online or pawn your goods, but you have to wait for hungry buyers when you sell items online. Pawn shops may also devalue your items, and you may not get the capital you need or deserve. A payday or car title company will quickly process your application, and you can get the same-day cash you desire to help you in your critical time of need.

Title loans are one of the helpful means if you are looking for a short term loan. Here, the loan gets instantly approved and the borrower finds it as one of the best available option.

Title loan is secured to the vehicle as collateral, but you can still freely use the vehicle in the manner you want. Many lenders take the vehicle as collateral to back the loan repayment. It is important that the borrower has a clear title to the loan. He needs to produce valid documents proving that he owns the vehicle at the time of approval of the loan.

The processing time in title loans is very fast. In regular loans, the borrowers have to wait for several days for the approval. In title loans, the borrower can know the status within 30 to 45 minutes after the application is filed. People with bad credit who are disheartened because of refusals in the application process will find title loans different. No credit check is required in Title loans Texas.  You can still get approved for title loan even if you have county court judgment, individual voluntary arrangement etc. by being regular in the loan repayments, you can have a sizeable positive effect on the credit status.

While applying for the title loan, the borrower needs to present his pay stub, a couple of personal references and a valid address proof. Once these documents are submitted, the loan can be sanctioned for use.

Title loans are best used for short term because of high interest rate. Hence the term of repayment should be for a month or two.

Due to unavoidable circumstances, if you are not able to pay the title loan in the month it is due, you will have to pay the double amount in the subsequent month, plus the interest of the first month. This is because interest in the second month costs equal to the actual amount.

It is advised to use title loans only during emergencies and not to get trapped in it. If for some reasons, the borrower fails to pay the title loan in the month it is due, then he has to pay double in the subsequent month or else he will just pay the interest. This means that the principal will be carried over to the next month and the borrower has to pay interest equal to the principal. This way it becomes a vicious cycle making it difficult for the borrower to come out of this trap.

Before taking the title loan, it is important to plan repayments and make sure to pay it on time to avoid the late fees. The rate of interest is very high so one should keep this factor in mind.