Due to a state law in Texas, payday and car title loans are now available in the state. While the process has been slow to take hold, there are some people that have been enjoying the benefits of such loans. Payday loans can be very beneficial to a person who can not afford to pay a monthly installment on a car or home.
Payday loan relief
Loans can help provide some much needed relief when things get tough. However, because of the low interest rates and the shorter repayment terms, a person could find themselves with financial difficulty once the loan is paid off. A Texas car title and payday loan can help put a person in a position to make good on the loan.
One of the best things about these loans is the low interest rate. The loan can be used for almost any type of purchase and is often times less expensive than buying the vehicle in the first place. Because of the low interest rate, many people do not think twice about taking out a payday loan in order to buy a car or a home.
However, due to the high number of people who end up having their cars repossessed because of their bad credit, Texas car title and payday loan companies have taken a different stance on the loans. Many of these companies now offer no money down loans. This is good news for many people who could use the cash and then some in order to avoid repossession of their vehicle.
Guidelines to follow
Texas car title and payday loan companies have a set of guidelines they follow when offering the loans. Since most consumers have high interest rates, the lenders can have a tough time attracting customers who are looking for a loan that will not have high interest rates. They usually require a two percent down payment for the loan and for the customer to maintain a certain level of monthly payments.
Of course, this makes the loan very appealing to people who find it difficult to afford the fees for the loan. It is not surprising that many people do not want to consider bankruptcy and other debt relief options. They would rather pay their debt off by using the loan, which gives them some relief.
What if I have a poor credit rating?
Those who have a poor credit rating, which usually includes people who have fallen behind on their car payments, could qualify for a Texas car title and payday loan. They just need to meet the requirements set forth by the lender. However, if the customer falls behind in the loan payments, the lender can often put a lien on the loan and sell it off at auction.
Credit counselors are usually used by the companies to review the customers’ credit before they are approved for the loan. If the credit counselors believe that the customer will not be able to make the monthly payments, they will recommend that the customer apply for the loan. The counseling process is done so that the customer will have a fair chance at getting approved for the loan.
Texas car title and payday loan companies also work to make sure that the customer gets the loan. Because of the high interest rates and the short repayment terms, the company wants to make sure that they do not run into too much trouble. It is important that they keep a close eye on the customer’s credit reports to make sure they have nothing to worry about.
Even with the low interest rates and the low monthly repayment terms, it is still a bad idea to take out such a loan if you have a poor credit rating. Instead, shop around for a payday loan that offers a lower interest rate, longer term and even includes money-back guarantees. Not only will you find one that works for you, but you will also enjoy the peace of mind that comes with getting a loan.
It is always a good idea to find a new lender if you are having trouble making your payments. Since so many people are finding it difficult to meet their obligations with their vehicles, many lenders are closing their doors and waiting for the economy to improve. After all, it is always a good idea to shop around when it comes to your finances.