The Benefits of Title Loans
You may have considered applying for an installment loan or a payday loan, if you are in need of some quick cash. However, these are not your only options and if you own your own vehicle completely then you could benefit from a car title loan. This is where funds are accessed in exchange for your vehicle title, which is used as collateral.
Here are the benefits of title loans.
Quick Access to Money
It generally takes just a few days to complete a car title loan application and have the funds in your account. You are eligible for a title loan if you have a steady income and own your car outright.
You will need to complete an application form, signing all relevant paperwork and arrange a time where a representative is able to take photos of the car and collect its title.
No Credit Check
The majority of loans involves a credit check to ensure that the applicant is credit worthy and are able to meet the financial obligations. With a title loan, you will not have to undergo a credit check, so those with poor credit are also able to apply. You will just need to have a regular income so that you can repay the loan and own your car.
You Can Still Use Your Car
A car title loan means that you give up the title for your car whilst you repay the money you have borrowed. You are still able to drive your car. The title to your car is collateral for the lender and once you have repaid the loan, the title is given back to you.
Cheaper than Cash Advance
Payday loans and cash advances can be expensive and title loans will usually work out cheaper as the interest rate is lower. This is due to the title loan being secured to your car and is used as collateral. The lender then has security if you default on the loan and are then able to charge a lower interest rate.
You will know in advance what you will need to repay and when. Many people will repay their title loans when they receive their next paycheck. However, there are some that will require a few paydays before they are able to repay the title loan. A main benefit of a title loan is that they can be given in any amount, which is based on the value of your car.