There may come a time in your life where you need to get cash and you need to get it quickly. There are conventional loans out there but those can take some time and still result in huge interest rates that can leave you paying far more than the amount you borrowed.
This is where title loans come into play. Though they have a bit of a bad reputation, title loans can actually be better than conventional loans. Here are just a few reasons why that is the case.
1. Title Loans Are Cheaper Than Cash Advances
Conventional loans and cash advances differ from title loans in that they base your borrowing strength on your credit score. If your credit score is bad, your interest rate will be higher if you even qualify at all. It can be stressful to face those huge rates.
With title loans, your car is your collateral. This offers protection for the lender that doesn’t exist in traditional loans, making it easier to get you the money you need without those expensive interest rates that can bleed you dry.
2. Repayment Options Are Easy
Unlike some traditional loan options that do not offer the easiest of payment schedules, car title loans will offer repayment options that are both quick and easy. They will have a schedule up front so that you know exactly when you need to pay your loan back by, leaving no questions.
This can make it easy to know when you need to have the money paid back and they won’t be for long periods as some traditional loans are. Get your schedule and get it paid off. It’s that easy.
3. They Are Less Stressful
Getting the quick cash that you need can be stressful if you go through traditional loan avenues. Just getting the money can be hard enough; then, you are faced with astronomically high interest rates that leave you paying it back forever.
With title loans, you get that cash quickly without those massive interest rates dragging you down. This means getting the money that you need immediately without the stresses that can come with traditional loans. And that’s what the loan process should be about: getting money quickly and being able to repay it easily. Not all loan methods follow this ideology.
4. They Have the Shortest Turnaround Time
The process of getting a traditional loan takes time. They have to run a credit check, show you what you’re approved for, and come to an agreed payment schedule with those inflated interest rates tacked on top.
But with title loans, you need a car and steady income. That’s all it takes to get approved quickly, get the cash that you need, and move on with your life. There are no credit checks, no requisition process, no lengthy wait to get the money that you might not be able to wait on.
Title loans are far more beneficial than you may have ever realized and are certainly an option to check out if you need money quickly.
5. They are Open to Anyone
Traditional loans from banks and financial institutions typically require pages upon pages to fill out, credit reports, and in-person interviews. This process can not only take a long time but many will also not qualify for a loan.
Title loans on the other hand are created to be quick and simple. All you need is the title to your vehicle and you can receive your money within days.
6. There is Little Restriction on Collateral
Conventional loans often restrict how you use the asset that is put up for collateral in order to ensure the loan is protected in case of default. Due to this, many are under the misconception that title loans operate the same way, that the title loan lender will possess your vehicle. However, this is not the case.
Title loan lenders are aware that a vehicle is needed to earn money and they allow borrowers to continue driving their vehicle while the loan is in effect. At most, a lien is placed on the title of the vehicle until the loan is paid off.
7. They are Intended to be Short-Term
Banks and other financial institutions often have penalties for early repayment of loans. The reason they do this is they want the borrower to pay off the loan as long as possible to increase the total interests paid on the loan. Having an early payment penalty deters many borrowers from paying off the loan early.
On the other hand, title loans are not intended to be long-term. They are intended to be short-term loans that is paid back in full within 30 to 60 days. If you are interested in a title loan it is very important to understand this fact.