There may come a time when you need cash and you need it fast. There are a number of avenues that you can take to get that cash quickly but one avenue that you may not have really considered is that of title loans.
All we have heard about are the negatives surrounding these loans, but what are the good things that come out of the process? Here are a few things about the title loan process that you may not have realized could make it so beneficial.
1. You Get Quick Cash
Here’s the thing about getting a lot of cash in short order: there are only so many ways that you can achieve this. With online loans, you can possibly get the money that you need quickly enough but then you’re faced with high interest rates that can make paying off the balance more difficult than you may have originally considered.
With car title loans, you can get the money that you need quickly and conveniently. With most title loan places, you can get your money within ten minutes! This allows you to get the cash you need instead of being stuck with a drawn-out process.
2. Credit Won’t Matter
Another hang-up of traditional loans is that they can hedge on your credit score. Some places will grant you the loan if your credit is bad but the interest rates will be so astronomical that paying back the principal will feel impossible.
With auto title loans, there are no credit checks. This is because your vehicle is collateral whereas with a traditional loan, your credit score would be the indicator of your borrowing ability. Don’t worry about getting the cash you need if you have a poor credit score as a title loan won’t check it.
3. All You Need Is a Car
Since loans aren’t based on your credit or credit history, all you need is a vehicle. This is because the loan process uses your vehicle’s title as collateral for the loan itself. So long as you have a vehicle and steady income, you should be able to get the money that you need.
Being able to provide collateral for a loan means that you can get it much more quickly and with far fewer hoops than other types of loans.
4. You Can Still Use Your Car
The title itself is used as collateral in the event that the borrower (you) can’t pay back the loan. Lenders typically place a lien on your title. Once you make the final payments, the lien is removed. This way, you can continue to use your vehicle even while the loan is being repaid, allowing you to get the money that you need without having to sacrifice your car.
Title loans can actually provide a litany of benefits that can give you the cash that you need without any expensive interest rates that can keep you paying forever.