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A car title loan is a simple way to get money quickly in the event of an emergency or unexpected expenses. The way that it works is that you give a lender the title to your vehicle as collateral in exchange for a loan. There are many lenders that offer title loans Jacksonville to meet your specific needs.

There are many different reasons why you might want to get a car title loan. You might need to catch up on your bills. Or maybe you just need a bit of extra money to tide you over until payday. You might have had an emergency where you need some quick cash. No matter what your situation is, a car title loan can enable you to get cash quickly when you really need it as long as you have the title to a vehicle.

The way a car title loan works can vary depending on the type of lender that you use. Usually you get a loan by simply providing the lender with the title to your car as collateral. In some cases a lender might require that they have possession of your car until you pay off your loan, but usually you will be able to retain use of your vehicle.

The way the process generally works is you take your title and car to a prospective lender. They will look up your vehicle by model, make and year to determine what your car’s resale value is. They will also inspect your car to determine what its specific condition is. You will usually qualify for a loan of around fifty percent of what your vehicle’s total resale value is.

After you receive the loan, you will either be required to make payments with interest or make a lump sum payment by a specific date.

Car Total Loan Advantages

Get cash fast whenever you need it
Obtain a loan, regardless of what your credit score is
Ability to use the cash however you want
Fairly small loans are available, which make them easier to pay off

Car Title Loan Disadvantages

High fees
High interest rate
Potential of losing your vehicle if you default on the loan
You must have the title in your possession and it must be free of liens

In general, if you are having a hard time qualifying for other types of loans, have bad credit, or need cash quickly, then a car title loan might be your best solution. However, you do need to ensure that you have a title in your possession that is free and clear of any liens You also will need to be able to repay the loan. If you don’t you risk losing your car a title loan.

When you really want to buy a car, only five in hundred people would have enough cash in hand to make the payment right away. Majority of people shop around for a car loan when they are prepared to buy their dream car. Chase Bank gives you an opportunity to buy a car loan at competitive rates. You can also use Chase logon to access your loan account and keep a tab on your finances. You can lower the borrowing costs by using the following tips:

Do not get emotional while taking the decision

Even if you loved the smell of the car you just drove for the test drive, you should not get emotional to buy the car loan from the dealership. Or you may want to buy a few things from one dealer that the other one is not offering. Be prepared to let go the loan if it is expensive.

Have a good credit score

Even if you have just thought of financing your car, you must make sure that you have a good credit score. Having a high credit score gives you the power to negotiate for the lowest possible rate of interest. You can have free credit report from some websites once a year. If you find any red flags or errors in your credit report, you need to rectify them before you apply for a loan. Once you have improved your credit score, you can recheck it by paying some fee.

Research at credit unions and local banks

Although Chase Bank gives you the best rate of interest for a car loan according to your profile, you may want to shop around to look for car loans at credit unions and local banks. Some of the non-profit credit unions may offer lower rate of interest for a car loan. You may find the rate of interest listed on the websites of credit unions or banks. If you are not satisfied with the information, you can also spend a few minutes to ask for a quote.

Compare the rate of interest

When you have procured the rates of interest from various local and national lenders, it is time to compare them at your convenience. If you have a personal checking or savings account with the Chase Bank, you may want to ask the bank how you can lower your rate of interest up to 0.50%.

Negotiate with the bank or the lender

After you finalize a lender that offers the lowest rate of interest, there is no harm in negotiating further. Having a high credit score gives you the power to do so, but you can try to negotiate even if you have a modest credit score. If you do not have a savings or checking account with the bank or the lender, you can offer to have one to lower the rate of interest.

Getting a loan can be a challenge if you have a bad credit history but, thankfully, it is not all doom and gloom. In fact, there are plenty of bad credit car loans if you do your homework properly. For people with bad credit, loan availability is not an issue anymore – what matters is the interest rate the lender will charge.

Secured and unsecured bad credit car loans

When applying for a bad credit car loan, you could choose between secured and unsecured loans. Whatever your choice, these loans are more expensive than loans available for people with good credit, but for some people this is the only loan option available.

Secured loans are cheaper

A secured bad credit car loan is always preferable to an unsecured one because it is cheaper. For starters, most lenders will not ask for a down payment, which in most cases is the biggest headache for prospective borrowers.

Even in situations where a down payment is needed, it is usually a fraction of what you would need to pay if your loan is unsecured. Moreover, the interest rate charged on the loan is much lower but this usually depends on the collateral you offer. When you use the car you are purchasing as security, the lender is assured of getting his or her money back in the event of a default, hence the low interest rate. For this reason too, the approval rate for secured bad credit loans is much higher.

Unsecured bad credit loans

Despite their shortcomings, unsecured bad credit loans might be the only option available for your auto financing. When you look at the risk that the lender takes, it is easy to understand why a higher down payment is required and also why the interest rates are high.

The long term benefits of a bad credit loan

Secured or unsecured, a bad credit loan might not only help get you the car you desire but also help improve your credit rating.

Normally, a bad credit rating will take several years to improve, but you can change this by getting a loan. The moment you start repaying on a consistent basis, your lender will translate this as a measure of responsibility and in a very short time, you’ll see marked improvement in your credit score. Chances are that by the time you finish paying your bad credit loan your credit score will help you get cheaper loans.