Six Advantages of Title Loans That You May Not Know

One of the major benefits about title loans is that applying is both quick and convenient. For example, if you go online to apply for this type of funding, it can be completed in as little as 10 minutes. In fact, some people submit the application form and receive the cash that day! It just depends on when you apply. Usually, if you apply in the morning, you will get quicker results. With that being said, the following information gives you more reasons to choose this type of loan.

1. Title Loan Borrowers Do Not Have to Have High Credit Scores

When people take out title loans, they are taking out no-credit-check loans. Therefore, you do not have to have pristine credit to receive the loan money. That is because the loan is collateralized so you don’t have to have perfect credit. A lien is usually placed on the vehicle title until the loan has been repaid Most title loan senders give money for title loans to borrowers who own vehicles that are worth more than the loan amount. You should also show a source of income.

2. Anyone Who Owns a Vehicle Can Qualify for Title Loans

You don’t have to own a car to qualify for title loans. You may also own a truck, recreational vehicle (RV), or motorcycle. All these kinds of vehicles can qualify for title loan funding. Again, a title loan is not based on your credit score. It is secured through a vehicle title. As long as you own a vehicle and have income to repay the loan, you can get the cash you need for different kinds of expenses. Some of these costs are related to emergency repairs or expenses that cannot wait until payday.

3. You Can Still Drive or Use Your Vehicle

Many people think that they cannot use their cars if they apply for auto title loans. However, you are using your car’s title to obtain the loan money so you can still use or drive your vehicle. Therefore, you won’t experience transportation problems when you borrow this way.

4. Title Loans Are Not as Expensive as Cash Advances

Title loan lenders do not have to charge as much interest on a secured loan as the title serves as a protective layer. Therefore, interest rates tend to be much lower than cash advances. As a result, title loans are typically overall cheaper than cash advances.

5. Repayment Is Easy

Title loans also provide easy and fast repayment options. Once you take out the loan, you follow a payment schedule. That way, you will know on what dates your payment is due. You can frequently set up automatic online payments to make things even easier.

6. They Are the Ideal Way to Get Rid of Financial Stress

If you are going through a spell of financial hardship and/or have a poor credit rating, title loans make it possible for you to stay afloat financially. You can get rid of the stress and anxiety that come with unexpected financial burdens. By taking out a title loan, you can stay focused on your daily routine and pay unforeseen expenses as soon as possible.