During some time within each of our lives we must obtain one or more loans in order to continue to remain as healthy, as happy and as alive as we can be. Your ability to obtain a mortgage, receive instant credit from as issued credit card and the value of the vehicle you purchased, plus your overall credit rating, allow any lending institution, if they so desire, to earn a profit as a result of your desire for ready cash.

Such loans can be truly expensive, with regard to the fees that you must pay and the total amount of the interest that you must also pay as a consequence of receiving that ready cash. From my point of view, such loans should be avoided at all costs.

Then again, in order to receive any kind of what I consider to be a reasonable loan one must establish a good credit rating. To do so one must be willing to become a victim of those who grant such loans. Ones ability to repay such loans in a timely manner then earns a good credit rating for you.

In regard to the purchase of a motor vehicle, if you cannot afford to pay cash many lending institutions will give you a so-called car loan, provided that you pay the fees and the interest associated with such a loan. So too, to receive such a loan one must make a down payment or an up-front payment of a certain percentage of the cost of the vehicle.

Believe it or not, as soon as you drive that new vehicle off the dealer’s lot your new vehicle suddenly becomes a used vehicle that loses as must as ten percent of its purchase price. That is one reason, and probably the main reason, why that up-front payment is required. Naturally, the lender retains the title to the vehicle in question until such time when you fully repay the loan.

Such title secured loans are also available to you if you own a vehicle that is six or less years old. In the event that you require a loan for some other reason, like a vacation or the payment of a medical expense, you can apply for what is known as a car title loan. The lending institution will determine the value of your vehicle and then tell you how much will be granted to you in the form of a loan.

If the loan is acceptable to you, you will most likely have to assign the title to the lender as part of the loan agreement. In the event that you default on the payment of the loan, as a result of a purchase of said vehicle of use the vehicle as collateral, the lender has the right to take away your mode of transportation.