It has happened to almost everyone at one time or another; our cars have unexpectedly broken down when we can't afford to pay for an expensive repair. In the past, those of us with no credit cards, or maxed out cards were left with no option except to take our vehicles off the road until such a time as we could afford the cost of the repair. Fortunately today we have alternatives to such situations.
Today there are vehicle repair financing companies that can help. These companies offer financing specifically to those with no credit, or bad credit, who simply don't have the option of increasing their credit card limit. Because this financing is offered to those with poor credit histories, the borrower's vehicle is used as collateral to secure the loan. The vehicle remains in the borrower's name at all times, unless the borrower defaults on the loan, at which point the vehicle's ownership is transferred to the lender.
Lenders are usually able to advance amounts up to half of the market value of the vehicle. Because these loans are given based on the value of the vehicle, not on the credit rating of the borrower, the funds can be advanced quite quickly. Some lenders are even able to approve loans and send the funds all within the same day. This allows the borrower to get their car repaired and have it back on the road within the same day, depending on the time spent on the repair.
The vehicle repair industry is a relatively new industry, so finding a lender may be difficult, but it's not impossible. Ensure that the lender you choose is a reputable one by checking with either the Better Business Bureau or a similar entity, and that they do not have outstanding complaints against them. You may also request references from former customers. Also check the conditions of the loan carefully, or else you may find yourself stuck in an unending cycle of paying down only interest with little or no reduction in the amount of the loan.
As with all loans, car-title loans should not be taken lightly. They should be used by those who due to poor credit are not able to seek financing through typical financial institutions. Payments must be made on time and in full or the borrower risks either having an increase in interest charges, or worse, losing their vehicle. Finding the right lender is an effective way to ensure that you have a good loan experience.