We all encounter some difficulties in life, especially when we face a financial crisis. We need extra money to pay off our debts such as monthly rental payments, school fees, overdue bills etc. Getting a loan can help you out at that time. There are many options which you can access when it comes to getting extra cash. One of the more popular choices would be to get a title loan.
All you need to know about title loans!
Title loans are a type of secured loans where borrowers can use their car title as collateral. The lender puts a lien on your car in exchange for the loan. During the loan period, you would still be allowed to use your vehicle. With title loans, the lender has the right to repossess your car if you fail to repay the loan which you have taken.
What is a traditional loan?
A traditional loan is a bank loan, which is the most common form of financing. This type of loan provides funding that is paid back incrementally over a fixed period of the term.
Title Loans are a good option for fast cash!
You need money fast, but what if you have a bad credit score that keeps you away from accessing traditional short-term loans? A title loan is one way to get your hands on some fast cash with no credit check and minimal income verification. This is why these loans are also known as bad credit Car title loans.
If you need a quick solution to your financial emergencies, then you can go for title loans that are safe and convenient. The application process is easy, and within a short period, you get approved for a title loan quickly. The process is so efficient that once you have submitted all the necessary documents, you can get a hold of your money on the same day.
Whereas traditional bank loans are nothing like this, you have to wait for days or weeks before your request can be approved. That’s why title loans are mostly preferred by thousands of people these days.
There are some reasons why a title loan is better than a traditional bank loan:
Your credit score is not a factor in title loans: This is because your car’s title secures the loan as collateral which is a great opportunity for the needy people who might not have a good credit score to get help in times of financial emergency. On the other hand, credit score and history are taken into account very seriously in case of bank loans. This means a number of people may not be able to access funds when they need them the most.
Get the money you need: The loan is based on the equity of your vehicle and the ability to repay the loan, so you can get as much money as possible if there is adequate value in your car. If you need money on short notice, then this is a big relief to many borrowers.
Get money quickly: The process involved in a traditional bank loan is very long, which may delay your request for money approval. While banks might keep you coming back to check on your request for weeks, but with title loans, you can get your loan very shortly.
Easy application: The application process is so easy that you can complete the first steps on your cell phone from the comfort of your couch. These loans come with the most straightforward method, which makes it suitable for the customers to apply.
What do you need to do to get a title loan?
The loan approval process is fast and easy. After submitting the documents, you will be qualified for a loan that takes minutes or less. A representative will identify how much equity there is in your car, and you get the amount based on your vehicle and your ability to repay the loan. After being approved, you can receive your funds in as few hours as possible.
Advantages of a Car Title Loan
Get money Quickly: You get approval for a loan on the same day you apply for it.
Credit Doesn’t Matter at all: Your credit score doesn’t matter, the loan amount is based on the value of your car and your ability to repay the loan. People with all types of credit can apply for such a loan.
Keep Driving: Even though your loan is based on your car, you are still allowed you to keep your car and drive it while you’re paying off a loan.
Easy Application: Applying online will only take you a few minutes, and you can get the money you need as soon as possible.
No Prepayment Penalties: There are no penalties charged if you payout your loan early.
If you are in the middle of a financial emergency, title loans are an excellent solution for people who require quick money.