Pink Slip Loans Worse Than Payday Loans
Pink slip loans are a financial last resort in the same vein as payday loans. They work in much the same fashion, offering a borrower a sum of money over a very short span of time at a high interest rate. Unlike payday loans, many pink slip loans do not require a fee. However, this is because they effectively lien the car against the loan. If the loan is not repaid, the car is taken.
This changes the dynamics of the loan significantly. In some ways, this makes them arguably less risky, but as with payday loans, it is best not to chance it and to simply repay the loan as soon as feasible.
Pink slip loans are available online. However, looking for a pink slip loan online requires due diligence. There are several things that you should look for before committing to a loan. The first thing is the reputation of the lender. If you cannot find any information about a lender’s reputation, that should be taken as a major red flag. The next thing to look into is what information they request and how they are prepared to take your car if necessary. Many scam artists style themselves as lenders willing to put a lien on your car when in fact they are simply trawling for account information.
While seeking a pink slip loan necessarily implies a financial crisis, don’t be hasty. Do your research in advance and be careful about who you do business with. You could save yourself an even worse situation.