How do those CAR TITLE loan places work?

[Anonymous]

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@LynetteM wrote:

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@Anonymous wrote:

For fun.....................I have an 80s car worth  500 bucks. What If I borrowed against it? (If ...if I could...they would probaly laugh)  Then...came back a month later with the 500..........Is it all under a contract?? Hmm.....

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Not only is it under a contract...your FICO could likely be penalized for this type of loan reporting on your credit report.

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Wouldn't that be known as "a consumer finance loan"? Yeah those are bad. Totally not worth it. If they even gave you a loan it would prop only be about $200 or so being that your car is as old as it is (it's not a delorean is it?) and them being the donkeys that they are it would prob cost you about $1200 to pay off the loan.

[Anonymous]

They put a lien on your title for the amount they are giving you + their fees and interest. So they look up the blue book value, use the lowest margin and then calculate how much interest and fees they are adding, and then what is left is what you can potentially qualify for. Its a payday loan style loan sharking using your car as collateral, that's all. BTW, sorry for jumping into the discussion late, if anything has been repeated, I apologize.