An Auto Title Loan should only be used as a short-term loan to solve an immediate need. The following are some examples of appropriate uses for Auto Title Loans:
- Consumers who have a sudden and unexpected need for cash due to common financial challenges like medical emergencies, vehicle repairs, divorce, job changes or other unexpected expenses.
- Self-employed small business owners with an immediate need for short-term working capital.
- Consumers who, because of low credit ratings, don't have access to traditional credit-based lenders, like banks, credit card companies, credit unions and small loan companies.
- Consumers who need a small amount of cash immediately and don't have time to wait for a bank to approve a loan. Banks and similar lending institutions are not always able to accommodate such requests.
- Consumers who see this service as a sensible alternative to bounced check fees, late fees or wire transfer fees.
To see more on this topic please visit this website: http://www.consumerfinance.gov/askcfpb/