What are the Benefits of Using Title Loans
Unexpected financial situations happen, often leaving you scrambling for a way to get the hands on the money you need to address it. Getting a loan is usually a lengthy process and can be out of the question for those who have poor credit. And payday loans can be expensive if not used properly and will only net you a few hundred dollars. Plus, the balance is due in full in just a few weeks. However, there is a way to use the equity you have in your car to get the money you need without the worry of having to pay it off all at once. And you don’t have to have perfect credit. As a matter of fact, you don’t have to have any credit at all. If you own a car, and have a steady income, you qualify for title loans . Here are a few benefits that these loans will afford you:
Quick access to cash
The loan process is very fast. In most cases, you can complete the application process in a matter of minutes and will walk out of the lender’s office in less than an hour. You’ll need to bring some documentation with you such as proof of income, proof of address, your identification, your car’s title and a spare key. When you visit the title lender’s office, you will be asked to complete a short application where you will provide information about yourself and list a few references. You will also be asked to furnish the required documentation and then the lender will conduct a quick value assessment of your vehicle. You will then be provided with a loan amount. Should you choose to accept it, you will complete the application process by signing the necessary loan documents and then be presented with a check as well as a loan contract that outlines the terms of the agreement including the term, the amount of your payment each month and the amount of interest you will be paying.
No need for a credit check
Title based loans do not require a credit check like most loans. The title lender bases the amount of the loan you are offered on the market value of your vehicle. This means that those with poor credit or no credit don’t have to worry about being turned down due to credit issues.
You can still use your own vehicle
As with other vehicle loans, a title based loan does require you to pledge your car against the loan as collateral. However, you are able to continue using the vehicle so long as you are making your monthly payments. Having a title loan does not affect your ability to use your car.
Cheaper than a cash advance
Because title based loans are secured loans, they are less risky than cash advances from payday lenders. Because the loan is less risky, title lenders can charge less in interest to protect themselves against defaulted loans.
Quick repayment schedules
Title based loans are constructed like other installment loans. They will require you to make a minimum monthly payment each month until the balance of the loan is paid in full. However, you can pay off your title loan whenever you want without a prepayment penalty, which can make you title loan even cheaper. And, when you pay off the loan, you’ll get your title back.
Title based loans are a useful financial tool that borrowers can use to address any financial situation. The process is fast and available to anyone who has a steady income and owns a car free and clear.