Home Money & Finance The Advantages of Title Loans

The Advantages of Title Loans

by Olufisayo
Advantages of Title Loans

In life, there is always a time when you require raising money fast. Banks and other traditional lending facilities take weeks or days to approve loans. Also, it takes a lot of scrutinies before you can qualify for the loan. This is where a title loan could be useful.

Title loans are loans that let you borrow against the value of your car. They come in handy because they are often approved on the same day you apply and do not take into account factors like your credit score. That said, there are a number of other advantages to borrowing money with a title loan.

Reasons to Consider Car Title Loans

They Are Easy to Access

Ease of access is one of the advantages that make title loans popular. There is very little paperwork to be filled out. Most times, you only need your ID, proof of income, and car title as documentation for the loan approval.

Also, you can access these loans online or in offline stores. The application process is very straightforward for anyone to go through. You can have your loan approved within minutes.

Fast Approval

The approval process for a title loan is very fast. You can have your funds within an hour of your application. This makes title loans some of the best choices for people in need of quick cash.

Note that some lenders give up to 24 hours before your loan is approved. Be sure to check to ensure you understand the waiting process and timeline.

Your Credit Score Doesn’t Matter

Car title loans are also commonly referred to as no credit loans. This is because your credit score does not determine whether you qualify for the loan or not. The only determinants of your loan application approval are your car and the ability to repay a loan. This makes these loans the easiest to secure for almost anyone with a car.

Most title lenders provide loans for anyone with a lien-free car title and a source of income. This means that they do not want another lender or other additional party signed on as an owner because they do not want things getting complicated.

You Get to Keep Your Car

Even though you put up your vehicle as collateral for title loans, you still get to drive it around as you make your payments. Only the title itself is collateral.

They Are More Affordable Than Cash Advances

Cash advances are given against zero collateral. For this reason, they attract very high-interest rates. The cheaper alternative is title loans. Because your car title is your collateral, the lenders do not charge as high of interest rates. Overall, they are less expensive than advance loans.

Repayment Options Are Convenient

The hardest part of taking out loans has to do with ensuring you make your payments in time. Most lenders offer stringent repayment guidelines. Failure to meet these guidelines means that you lose your collateral and your credit score is affected.

With title loans, since it is a secured short term loan, the repayment interest is often lower when compared to other lenders. Also, most title lenders can agree to an adjustment to your repayment option in case you are unable to complete your payment by the deadline. This makes title loans more manageable.

Title Loans Eliminate Stress

Life gets hard sometimes. When going through a financial hardship, it is easy to be stressed and depressed if you do not see a way out. A car title loan can help to eliminate the stress associated with issues that require money.

You could take out a car title loan to settle some of your other debts and pay your bills. This could help you to get back on your feet faster.

They Are Confidential

Most title loan lenders provide themselves in offering private and confidential services. Therefore, you do not need to worry about people knowing that you are going through a rough financial patch. These companies are also mandated by the state to safeguard any information you give them.

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