Title loans Birmingham are a form of unsecured debt that requires you to pledge your vehicle’s title as collateral. Borrowers usually receive funds shortly after submitting an online application, based on the value of their vehicle. Unlike payday loans, these types of loans are often available to people with poor credit. However, they often carry high interest rates and can be difficult to pay off. As a result, they can lead to serious financial problems.Source:birminghamtitleloanpro.com/

While the industry says that it provides a valuable service, many consumer advocates view title lending as predatory. In Alabama and Texas, for example, lenders can charge triple-digit interest rates on their title loans. Borrowers can lose their vehicles if they are unable to pay off the loan and interest.

Title Loan Essentials: Birmingham, AL Residents’ Must-Knows

Some states have caps on interest rates, while others require lenders to verify a borrower’s ability to repay. But even when these rules are in place, consumers still face a lot of risks. ProPublica spent months exploring the issue and found that even when borrowers make their monthly payments on time, they can end up paying more in interest than they receive in principal.

To help Birmingham residents avoid these problems, Always Money offers an online application and a network of local participating Money Gram locations where approved borrowers can get their cash. In addition to offering title loans on cars, Always Money also lends money based on the value of ATVs, motorcycles, boats, RVs, commercial vehicles, and landscaping equipment.