When you need to take out a loan, it is only natural to turn to a bank or credit union to secure a loan or line of credit. However, the process can be onerous and it can take weeks to get access to the cash you may need as soon as possible. If this sounds familiar, a car title loan should definitely be considered. This type of loan allows you to borrow up to the total value of the vehicle with the understanding that the lender will repossess it if you default. The following are some of the advantages of a car title loan.
1. Fast money
Sometimes, unforeseen circumstances cause people to require money fast. While loans and lines of credit can get you the funds you need, paperwork and red tape can prevent you from getting the financial assistance as quick as you need to.
Car title loans are becoming quite popular because of how quick funds become available. Approvals can take place in as little as 24 hours and when this happens you have access to the funds you have been approved for almost right away. Some companies that provide car title loans can even have you approved within one hour, giving you the money you need to get back on track.
2. No credit checks
Sometimes due to bad financial decisions or outstanding debts, people can have bad credit scores. This rating can greatly influence whether or not you are eligible for future loans but no so when it comes to ones involving car titles.
Car title loans are ideal for people with less than ideal credit scores. This is because anyone with a car that is worth at least the amount of the loan being requested qualifies. Car title loans can also be given more easily because it is a secured loan with you putting your car up as collateral. As long as you can provide proof of ownership of the vehicle, a credit check will not even be completed by the lender.
3. Easy process
The application process for traditional loans usually take hours to complete with loan officers asking for your life story. This can be inconvenient and stressful as you may need the money quickly and not know all of the answers to the questions being asked.
As stated, car title loan applications are quick and can usually be completed within one hour. Only minimal personal details are required such as contact information, photo identification, and ownership of the vehicle. As a result, you will not be held up and prevented from having access to the funds you may need right away.
4. Easy payment plans
When taking out a traditional loan, you may have some flexibility regarding repayment plans. However, at the end of the day the ultimate say resides with the lender and you are at their mercy. With car title loans, you are in the driver’s seat.
Car title loans, because they are secured, usually offer favourable interest rates, allowing more of your payment to go to the principal amount. Plans usually offer you options such as weekly, bi-weekly or monthly installments, ensuring that the schedule works for you. Therefore, you can fulfill your obligations to the loan without ever being left short.
5. Have access to the car
When you use your house or vehicle as collateral for traditional loans you do not have to give up using them do you? For car title loans you do not have to do this either.
When you agree to a car title loan, you are afforded the luxury of being able to continue to use the vehicle. All you need to do is provide copies of the title and keys to the lender, giving them the authority to assume ownership of the vehicle in the off-chance you default on the loan. As a result, you get the cash you need while still beign able to use your vehicle.
