Are you in desperate need of money to solve your personal financial problems and have no ways to solve it? Don't worry. Your car will be your source of money and will solve all such issues. The recent recession has compelled the lenders to reduce interest rates. This is a step to boost their business and offer various kinds of loans to help people manage their financial instability.

If you have a car of your own, auto title loans is a good source of funds during a cash crisis. They are also known as car equity loan are meant for short-term use. The payment term differs from 14 days to a month. If you run short of funds for paying off your loans, the loan will be rolled over for another payment period. In case of a roll-over, the rate of interest is higher. If your loan is rolled over a few times, you will have to pay a great deal.

As long as you own the title to your automobile and the title is without any liens, you can get a title loan approved within minutes. It is easy to get a car title loan as your vehicle is used as collateral for your loan. Some lenders also ask you to give them a spare set of your car keys. The keys will be used to repossess your car if you fail to pay-off the loan.

Auto title loans are low financial risks for lenders. This is because borrowers quite often take out loans for fewer amounts than the value of their vehicles. However, borrowers could get up to the retail market value of their vehicles with title loans.

One must use auto title loans properly and missing a payment can become a real risk. This is so because lenders can repossess your car and sell it. Matters can become worse if the lender is not able to cover his loan amount by selling your car. In such a situation, you will lose your car and will also have to pay for the remaining amount.

It is always better to consider auto title loans as short term solution for your financial needs. The rate of interest and the risk involved is very high in this kind of financial borrowing. The borrower must analyze the financial needs thoroughly and then wise decision.