If you have a bad credit score, but you are certain that you want a new car right away, you have the option to take out a bad credit car cash loan, otherwise known as an auto title loan. In these types of bad credit loans, the collateral you give to the financial institution to ensure you will pay off the loan is the title of the car you are using the loan to pay for. This type of poor credit car cash loan is also sometimes called a pink slip loan because the official documentation for a car title is a pink slip.
In general, auto title loans are a very risky way to borrow money, because interest rates are high, and if for some reason you cannot pay off the loan in time, you run the risk of losing your car. It is easy to take out this type of loan; there are many online organizations that offer pink slip loans, and these make the process of borrowing money very simple and straightforward. However, you should be careful when dealing with these companies. Most organizations that deal in the bad credit loaning business are disreputable and make most of their money by tricking people into accepting a bad deal because they feel like they have no other option. You should only take out a short term auto title loan if you are absolutely certain you will have the money to pay it off on time, and you have thoroughly read the contract and fully understand the terms of the loan.
A bad credit title loan is a bad idea, as is a pink slip loan. In both cases, you are putting the title to your vehicle up as collateral, and if you fail to repay the loan you will lose the vehicle. A title loan is like a payday loan, only you are using the title of your paid for vehicle as collateral. The majority of companies that offer these types of loans are a bit shifty. In most cases, the interest rate will be quite high, and more than likely there will be numerous fees involved. These types of loans should be only used as an absolute last resort.
