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. Reduce your total credit card payments by up to 30% to 50% with Debt.com.
Below are some of the benefits of car title loans you need to know.
Take back control of your finances!
Get a FREE checklist for the money moves to make in the New Year.
Also get new articles, advice, and tips delivered right in your email inbox with our newsletter!
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 are 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 are 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 reasonable 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.
A car title loan is a short-term loan that uses your car title as the collateral of the loan. A short-term loan typically means a repayment period of thirty days.
With a car title loan, you can only borrow a small amount, typically to the tune of a few thousand dollars for your car. It is meant to be a short-term fix for a small, quick need of money.
You give a lender the title to your vehicle for the period of time that you need the loan. Aside from the interest rate, you typically also need to pay the lender a fee for borrowing the money. So, car title loans can be expensive, but people still get them anyway especially for emergency situations. This is especially true if you do not have a fully funded emergency fund.
Should You Get a Car Title Loan?
Should you get a car title loan? That really depends on whether or not there are other places that you can borrow money from. Do you have a friend or family member who is willing to lend you money? Many people do not, and that is why they go ahead and grab the chance for a car title loan.
If not, then you can call your creditor to discuss taking a small cash advance withdrawal on your car. If you need a quick loan to pay your bills, talk to a credit counselor for help in getting more time to pay your bills.
Understand Your Options with a Title Loan
It is important that you understand what is a car title loan and its ramifications. You should only consider loaning the title of your vehicle as a last resort in an emergency situation. Why? Because if you fail to repay, the lender will drive away with your vehicle.
Out on the Internet, you can find many websites that offer car title loans. While some lend the money directly, others act as portal websites where you only apply for a loan and then your application will be sent to different lenders.
During your application, you typically need to send the title of your car, a picture of your car, and your photo ID. There are lenders that require a copy of your car keys. Once your application is done, you will then need to wait for feedback if your application has been approved. Many local car title lenders can do the paperwork in their offices.
If a lender approves your loan application, the money will be given to you while the title of your car is kept with the lender until you repay your loan.
There are many places out there on the Internet where you can get a car title loan. Although they offer the same loan product, they differ in their interest rate, loan terms, payment period, and loan fees.
Don’t ever make the mistake of borrowing money from the first lender you encounter online. It pays to shop around. Be sure to check out car title loans in Miami for great deals on a car title loan.
How to Get Title After Paying Off Car Loan
The process on how to get title after paying off car loan typically varies depending on your state. The lienholder is required to notify your state’s Department of Motor Vehicles, either electronically or by submitting paperwork, that states you have paid off your loan.
Typically, there is a bit of a delay for the lien holder to do this because they first want to make sure your check clears, and then they have to prepare the paperwork to notify the state. In some states, once the motor vehicles department is notified, it will automatically mail you your car’s title.
In other states, you’ll need to go to a state agency office to get the title. To learn the process in your state, visit your state’s motor vehicle website.
Do a little bit of window shopping by sending a loan application to several lenders or by using a website. Compare the loans based on the terms. Once you have a lender that you can work with, that’s the only time that you should get a loan.
Take your time. Remember, a car title loan can be expensive, but it can also be a tool to use for short term cash if you need it.
Have you tried a car title loan? What was your experience with a car title loan? I’d love to hear your thoughts in the comment section below.