Why would anyone ever get a car title loan?
Are car title loans risky and why would anyone get one? I see car title loan commercials on television all the time, but I've also read how predatory their loans are.
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Answered on Jun 29, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“People get car title loans in a pinch when they need money for an unforeseen event, bills, or even groceries.
The reason that people use car title loans is due to many factors, but most have to do with credit. For those with poor credit, getting a quick loan for a small dollar amount might be impossible. So instead, they get a title loan, as these places often deal with individuals with poor credit.
You’re right, though. The interest rates are about equal to loansharking, and these businesses should be avoided at all costs, especially if you have other financing alternatives.
If you have low credit, consider using a tool like Credit Karma to help you improve your score.”
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