What are title loans & How do title loans work? (Don't get screwed over!)

Sharing buttons:

hey what's going on guys so Cree having

a good day as always today I want to

make another video helping you

understand kind of banking terminology

loan terminology all that fun stuff just

you can kind of improve your financial

position and today I want to talk about

title loans what they are are they bad

through there for all the stuff and kind

of misconceptions about them

because honestly I bet the knee-jerk

reaction for most people is that they're

terrible horrible god-awful things that

you should avoid at all cost and I'm

here to tell you it's kind of not true

now before we get started if you want to

support the channel please do not forget

to like subscribe comment check out my

patreon to pages this really helps you

out you guys know that I'm trying to

help save my viewers $150,000 in

interest this year so any support you

can give to the channel is very much

appreciated now back to the topic on

hand what is a title loan now simply put

it is a loan any loan really whenever a

title is involved duh now here's the

thing a title can belong to a trailer it

can belong to a car a motorcycle a boat

all of these things have titles right

which show that you're the owner of said

item and what you do is say look you

know bank or title loan but I need a

loan okay and I'm actually willing to

give you my title for this thing to act

as collateral so there is less risk for

you guys right this is going to help

make it easier to get approved for a

loan now that's the basics right you get

you've you own something and you're

willing to give up kind of part

ownership of that item again car house

boat whatever it may be to this Bank in

order to get a loan now why would you do

this why why would you ever do a title

loan as opposed to maybe like a personal

loan right where you don't have to go

through these these frustrating things

well that's what I want to talk about

because there are a lot of

misconceptions things that make sense

things that don't make sense and I just

kind of want to clear that up for you so

let's first talk about kind of some of

the things that I think are bad about

title loans and then I'll go over to the

kind of the

so bad or almost I don't want to use

good took of loans and good don't always

kind of go together I think for the most

part loans or something you should try

to avoid but title loans in certain

regard are misunderstood and I want to

help kind of get that negative

connotation away from it so let's start

off with the bad things most people

think title loans are a terrible

terrible thing because when you drive

down the street and you see like payday

loans and cash advance an easy pawn I'd

be willing to bet you're going to see

some sort of title loan place as well

and I'm not gonna lie to you guys these

places are shady shady shady you don't

want anything to do with them even

though they're doing what I said a title

loan they do it in the most messed up

way possible trust me they don't have

your best interest at heart right I've

done title loan

where people will say hey I need like a

couple thousand dollars and you know

they give up the title to their car and

the loan company is charging them like

I'm not joking when I say a hundred

percent interest I've seen a five

hundred percent interest it's criminal

it really really is it's beyond

offensive it's irresponsible it's

something that when people say no you

should never do a title this is what

they're talking about and they're kind

of bright you should never do this up

this is like you know make signing a

deal with the devil you don't ever want

to do this okay the charge ridiculous

rate if you think you can get away from

them guess again they will come after

you continuously and you know again when

anytime you're dealing with your title

involved they're just going to come take

your car away if you don't pay it so

this is the main reason why people don't

recommend doing title on and I get it

all of that stuff is fair criticism now

what I do want to talk about again is

actually how title loans can be a good

thing but it mainly involves you having

to go to the right place now I made a

video in the past talking about those

that had like credit card debt and how

they can use equity to pay it off and

get a lower interest rate well honestly

guys I'm just talking about a title loan

right technically I've done thousands of

title loans at the credit union the

difference is because you're getting it

through a credit union and establish and

reputable financial institution you're

going to get much much better rates in

fact most of the times you're just going

to get like car loan rates or motorcycle

rates so let's say that you know you own

your car free and clear

it's your carpet you need a loan for

whatever reason honestly I think a title

loan is kind of a good thing because

let's say you've got you know good

credit right let's say like 700 or

higher you could say look hey I'm in a

bind I need a loan for this I you know

can you help me out I own my car free

and clear maybe I'm interested in doing

a title loan right well if you've got

good credit and the interest rates for

those title loans are pretty much the

same thing as car loans you're probably

looking at like two to three percent

interest okay if you've got like

600 score or somewhere around there

you're probably looking somewhere around

like 7% 6% so those interest rates if

you go through a reputable financial

institution are far far far better in

those title loan places but it's still a

title um guys there's nothing different

you're handing of your title saying look

Britain a part ownership of this and

then once I paid this long back I get my

title back I get my car back right and

that's why I don't always think it's a

bad idea now specifically I really even

recommend this for those that have other

debts if you're someone who has credit

card debt at a high interest rate if

you've got personal loan debt at a high

interest rate if you've got a line of

credit if you've got really any debt

that's at a higher interest rate well

more than likely you should consider

doing a title loan if you can only

because the interest rates are so much

better again only if you go to the right

place and if you can get it done if you

can get it approve in finance it just

makes things so much easier for you

because you're going to be put in a

better situation financially your

interest rates are going to go down

you're going to be able to pay off the

loan faster you will pay less money and

interest if you're paying off something

like a credit card you know where you

have maxed out credit cards at 20% but

you can do a title loan to pay off those

credit cards well eh now your interest

rate is so much lower but be your credit

cards are paid off and now your credit

score is going to go up because of that

so title loans are kind of a touchy

thing for certain people but again it's

not always a bad thing but like

everything else in life do your homework

make sure you're doing business with the

right people make sure you understand

everything involved because at the end

of the day not every bank is looking out

for your best interest again I may not

be able to help you out with everything

but if you need any questions answer or

feel like you know hey I could benefit

from this but I don't really know

exactly what I'm doing please feel free

to get in touch with me I'm always happy

to help out but that's what I want to

talk about today guys title loans

dangerous dangerous dangerous stuff if

you go to the wrong place but it's super

beneficial option if you are in a

position to take advantage of that and

you can go to the right financial

institution but thanks for watching guys

take care like subscribe comment so

please support me on patreon but take

care I'll see you next time hey guys

thanks again for watching this video I

hope you learned something new from it

and you were able to strengthen your

financial position I'm going to keep

coming out with more videos so please

stay tuned but go ahead and like

subscribe comment and have a good day