The Benefits of Title Loans
There are a lot of misconceptions surrounding the use of a title loan these days, especially following the hundreds of stories from across various news sources claiming that a title loan will simply put you into worse debt than what was previously being dealt with at the time. While that may be true in some cases, many working class individuals who take serious time to research their possibilities and determine whether or not a title loan is right for their needs find themselves doing considerably better after the fact. It is true that title loans come with a modicum of risk and responsibility, but anyone with their finances in order and a firm grasp on their current situation should have no problem paying back the loan in its entirety without incurring massive fees on their part.
Why Turn to a Title Loan?
There are many reasons why someone would turn to a private lending company to receive a title loan. In most cases, hard-working individuals turn to their trusted bank first but are subsequently turned down for being too high risk or not having high enough credit to deem worthy of a loan. In this particular situation, there really is nowhere else to turn after being denied a loan from the bank. In reality, one may turn to a private lending company that handles title loans and the contracts that come along with such a loan.
These private loan companies tend not to be as strict with their rules and regulations regarding who may receive a private loan or not. In fact, one of the best benefits of exploring title loan as a viable option is that most companies don’t require high credit score – they don’t check credit score whatsoever.
A title loan revolves around the ability to access funds in exchange for the title to your vehicle in the quickest time possible. You see, one only requires a working vehicle, the title, and their personal information to apply for a title loan.
The most obvious benefit to applying for a title loan is the ability to receive fast cash in your bank account within a single business day, in most cases. A vehicle title loan application will only take around 15 to 30 minutes to complete online. After submitting the application, a registered loan officer will take a look at your case. The funds will then be transferred to your bank account in as little as 24 hours. Some, however, may take up to one week to complete, though. Prepare for such a case.
The single most important benefit that draws most consumers into the world of title loans these days is the lack of a credit check. In this day and age there are more Americans that are in serious debt, which can lower their credit score drastically. A trusted bank will look at the credit scores first before denying or approving a loan – depending on the score itself. A title loan company, however, will completely forego the credit check entirely. Instead, the loan company chooses to work with customers by using a working vehicle and the title as collateral for the loan.
Beats out Advances
When it comes to borrowing money, many will turn to a few options and begin their research. Some of those options include cash advances and payday loans. Both of these choices are really not worth your time, though, as they can be incredibly expensive options to receive fast cash. Title loans generally work out being far cheaper as the lower interest rates make a massive difference. This is possible due to the lending company using your vehicle as collateral, which means they have no need to charge high interest rates to acquire their own level of security. The vehicle is the security.
Most don’t know this, but after applying for, and receiving, a title loan, you may continue using your vehicle on a daily basis without having to give up the car or truck to the lending company. Your title is the collateral, true, but the lending company does not require the actual vehicle in their possession unless you happen to default on the loan or contract.
There are quite a few reasons why title loans are worthwhile to those seeking a bit of extra help with their finances. Everyone needs a step up on occasion, and there is absolutely zero shame in admitting such.