Preying on The Weak... Why Should You Avoid Car Title Loans?

Jan. 24, 2011 - PRLog -- You have a bankruptcy, but you still need a car. You are not alone. Many people find themselves in this situation every day. No matter what happened, you now have to move past the bankruptcy and get on with your life and that means needing a car.  Here are some tips to get bankruptcy auto loans.
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One option to buy a car would be the car title loans, but let's take o look at this loan type.

What exactly are car title loans? Car title loans, also known as title pawn loans or cash for title loans, are small loans, usually less than $3000, secured with the buyer's car. The vehicle can be repossessed by the seller (who is the lender also), if the buyer fails to make the payments agreed to in the terms of the title pawn contract which governs the car title loans offered by the lender. One item that most people do not realize about a car title loan is that the lender has a right to make an extra set of keys that they may use to take ownership of the car is you forfeit the loan.  There is a lot to know about car title loans.

               1)   You not only pay a very high interest rate but you also risk looking the vehicle that you just bought with the loan money.  This is a situation that you could end up losing out on two sides.
                2)  As mention previously this is a very short term load which means that you not only have to pay off the loan but also the entirety of the interest in the agreed upon term or refinance to another term which usually means an even higher interest rate than the first term.  It is often very hard for the owner of the vehicle to make the agreed upon payments in the short amount of time.  
                3)    If you forfeit the terms of the car title loans agreement, then you also lose your vehicle.  If you are using the loan to finance the purchase of the vehicle then you have not only gained nothing but in the process have made you situation with your credit worse.

Before you decide to use car title loans to finance the cost of the vehicle that you need consider other options.  This is a very risky plan to undertake and more often than not it does not end well.
the Alternative To Car Title Loans Can Be Found At:
http://www.GuaranteedCarLoan.com

A Better alternative to finance a car after bankruptcy is to look at your options for post bankruptcy auto loans.  These are special car loans designed for those who have fulfilled the obligations laid out in their bankruptcy.  Bankruptcy auto loans and other bad credit loans are usually offered by dealerships and although they have a high interest rate, and strict terms they offer the buyer a chance to rebuild their credit easily by proven they have been financially rehabilitated and can now be relied upon as far as car financing.  This is a very important aspect of bankruptcy auto loans.
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For those who are interested in taking advantage of this kind of auto loan they should follow some basic tips to have the best chance at success with bankruptcy auto loans.

Once you have received the papers declaring your bankruptcy discharged then you should start the process of looking for dealerships which offer post bankruptcy auto loans.  It is important to do this quickly as you want to take advantage of the momentum you have coming off the bankruptcy that shows you have the ability to fulfill obligations.  Most people tend to think that you should wait till “everything has calmed down” from the bankruptcy before reestablishing your credit, the truth is just the opposite.  Bankruptcy auto loans let you move while the iron is hot and seek out car financing quickly.  Be prepared that you will have a very high interest rate and very strict terms, but this is a small price to pay to get back into credit worthiness.  

Another good option, when dealing with bankruptcy auto loans and how to finance a car without resorting to the use of car title loans, is to take advantage of your credit union if you have one available.  Credit union often have  auto loans available which offer competitive rates and lower payments over a much longer period than regular car financing offers.  Many credit unions have started to open their rolls to members who are not employed by a co-op company of the credit union.   Usually this means you will have to pay a membership fee and might have monthly dues to the credit union but otherwise you have all the privileges of full members. Bankruptcy auto loans through a credit union are a great way to get the car you need and start rebuilding your credit.  Another way is to pursue active bankruptcy auto loans, which allow you to finance the vehicle after a certain number of successful bankruptcy payments have been made to the courts but these programs are not recommended.

Finding good, reliable and reasonably priced car title loans can seem like a game that cannot be won, especially after bankruptcy. Don’t give up. Finding your bankruptcy auto loans can be as simple as taking a look at GuaranteedCarLoan.com.

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Our primary business activities include helping people with bad credit and bankruptcies find fast solutions for their credit problems. In plain english, we help people such as college students and and military personnel get approved on auto loans fast!