Philadelphia Car Title Loans

Car title loans in Philadelphia are different from other types of loans. First of all, the interest rates being charged for car title loans in Philadelphia are higher than what is considered normal by most borrowers. In regular loans, rates normally range from 1 per cent to 6 per cent. In Philadelphia car title loans, on the other hand, interest rates could go as high as 12 per cent.

Car title loans are not a common practice but you can find several pawnshops that offer this type of loans in Philadelphia. The reason why Philadelphia car title loans are still patronized by some people is that they are often the only means to get money fast. Even though they come at very high interest rates, Philadelphia car title loans are still practiced because they allow the borrower to get instant financing in cases of emergency, including hospital bills (excluding doctor’s fees), medical bills, car repairs, house repairs, et cetera. If you want to get cash fast, you can look at the many car title loans programs offered by pawnshops in Philadelphia.

In Philadelphia car title loans, the money you get is usually just a small fraction of your car’s true value. So say for instance you have a car which you bought for $5,000. Suddenly, your cousin or a close family member gets into an accident and you need to get money fast to pay for the hospitalization bills and medicines. No lender would give you money that fast. The normal approval process takes days to complete. So where do you turn to for money? You can’t get it from your bank. This is where Philadelphia car title loans come in. Pawnshops can offer you as much as $2,500 on short-term Philadelphia car title loans and you can get the money almost instantly. Of course, the interest rates are high and you would most likely suffer the consequences in terms of monthly repayments later on but it’s still money well spent.

Another example is that you make a Philadelphia car title loan for $1,000. Taking car value depreciation into account, at this point your car costs about $5,000. The pawnshop offers you one of their Philadelphia car title loans at 10 per cent APR. This leaves you with a total of $600 on interest charges at the end of the loan term which is six months. (Loan terms for Philadelphia car title loans are extremely short, around six to 12 months). At the end of the loan term, the total cost of your loan is $1,600.

Philadelphia car title loans are often called fast loans because they provide you a means to get money quickly and without any hassle. Pawnshops do not spend as much time checking your credit as other lending institutions might. In fact, there are only very few requirements you need in order to get approved for Philadelphia car title loans.

The first thing you need to apply for Philadelphia car title loans is your car title. This serves as your collateral, a guaranty that you would pay off your debt at the end of the agreed loan term. If for some reason, you were unable to make your payments, the lender can either take your car or you can take out another loan to pay off your loan balance.

Other requirements include a minimum annual income of $1,500, employment at the same place for more than six months, and proof residence for at least six months.