Benefits of Car Title Loans

Almost everyone may find themselves running short on cash at one point or another; it’s not just you. You may consider applying for a payday loan or an installment loan if you are looking for ways that can allow you to get your hands on some cash quickly and with the least bit of hassle. However, there is another method that you can use as per your convenience, as long as you are an outright owner of a vehicle. You don’t have to go for a payday loan as it requires you to pay excessive rates of interest. Instead, as long as you have a steady income and are a proud owner of a car, you can opt for a car title loan.

Car title loans enable individuals to get access to funds in exchange for handing over the title of their vehicle as collateral to the lender. There are some prominent benefits associated with auto title loans that can aid you in deciding if this type of borrowing is right for you:

Quick Access to Cash 

It takes only a few days for you to complete an application for a car title loan and have the funds in your bank account. As long as you have a vehicle and a steady source of income, you will be considered eligible for this type of loan. When you fulfill this criteria, you will be required to complicate the application form, sign the loan title paperwork and arrange a convenient time for the lender or their representative to take pictures of the vehicle and take its title. Some car title loans may take over a week to arrange while others give you access to fund in 24 hours. Click here for some more interesting details in this regard.

No Credit Check Requirement 

A credit check is performed in most loans for ensuring that the applicant is creditworthy and will be able to meet financial obligations on a timely basis. However, this step is eliminated in a title loan and this is a good thing, especially if you have a poor credit score. You will be eligible for a car title loan even if you don’t have a good credit score.

Access to Vehicle

When you take out an auto title loan, you are just giving up the title of your car until you pay off the money you have borrowed. This means that you are completely free to use your car as only the title of your car is held as collateral by the lender and is returned when the final repayment is done. Hence, in terms of traveling, your life isn’t really going to change when you opt for a car title loan.

Cheaper than a Cash Advance 

There is no need for the lender to charge high interest rates from you because you have given your vehicle as your collateral whereas payday loans and other installment loans have high rates of interest because they don’t ask for collateral.

The repayment schedule of car title loans is also quick so you will be rid of them soon enough. 

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