Car title loans are some of the most popular types of loans today which is one of the benefits of car title loans. This is mainly because they are easy to access and are tied to very few requirements or restrictions.
Unlike bank loans that demand a whole bunch of conditions including stellar credit score, guarantors, and collateral, car loans come with very few restrictions. Often you simply only need to have the title of your car in order to get a short term loan.
In addition to this, little paperwork is often needed with a car title loan applications being approved in record time. When faced with a financial crisis that needs money fast, title loans can help you get back on your feet quickly.
Below are some of the benefits of car title loans you need to know.
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Benefits Of Car Title Loans
Swift Cash Access
Any car owner with a steady income can apply for a car title loan. Applying for the loan is relatively easy as you can do it online or visit the merchants’ physical location. Upon filling in all the required paperwork, a representative then takes photos of the car and schedules a day to collect the title.
You can as well come equipped with the car title to facilitate faster processing. Once everything checks out, you can have the money wired or transferred to an account of your choosing. Most of these loans take between 24 hours to a few days for them to be approved.
Credit Score Doesn’t Matter
Your credit score doesn’t matter. It’s all about you having the title to your vehicle in hand.
With the tough economic times and most people finding it hard to maintain a stellar credit history, more and more people are unable to access conventional loans. This is because banks and other loaning institutions have to pull an applicant’s credit report before processing the loan request.
This however isn’t the case with car title loans. All the lender needs is your car title and nothing more to process the loan. The few restrictions are what makes most people go for a title loan and stay away from conventional bank loans.
You Keep Driving Your Car
You get to keep driving your car for as long as you don’t default the loan repayment terms. As mentioned earlier, all the lender needs, is the car title and not the car itself.
As long as you keep your side of the bargain and repay the loan installments on time, you can then keep the car until the final repayment where your car title is returned to you. This means you never have to part with your precious car just because you used it as collateral.
Lower Interest Rates
Auto title loans attract lower interest rates as compared to other reasonably options such as payday loans. Lenders consider auto title loans as secured loans and typically do not need to charge exorbitant interest rates.
The car title gives the lender a layer of security that makes them comfortable thus go easy on you. If faced with a mid-month crisis and need some money, you should then consider an auto title loan instead of a cash advance loan. You will be able to save a lot more money in repayment than when taking an unsecured loan.
Auto title loans are the perfect option for quick cash, especially when faced with a financial crisis. The car helps you find quick access to cash without risking it all or worrying about repayment plans. Be sure to check out car title loans in Miami for great deals on a car title loan.
Have you taken out a car title loan? What was your experience with car title loans?