If you are in search of a way to gain access to a bit of extra cash fast, you might have already thought about applying for a payday loan or installment loan. However, there are other ways to borrow cash if you own a vehicle outright. Many individuals that earn a steady-income and own their own vehicles can take advantage of title loans. This process involves access to money by exchanging your car title in the form of collateral. Below are few of the top benefits associated with title loans to assist you in deciding if this borrowing type may be beneficial for you:
- Fast Access To Cash
Title Loans: Secure Your Loan On A Car
It is easy to complete the auto-title loan application, followed by access to your funds directly into your own bank account within 2 to 3 days. Applicants that are eligible for title loans must have an income that is steady and already own their car outright. If you match up to these criteria, then all you need to do is fill out an application form, sign the Title Loan paperwork and then arranging a time that is convenient for you for one of the representatives to come out and take a few photos of your car as well as collect the title. You can receive the funds within 1 business day, although the majority of the auto-title loans usually take a week in order to finalize. So, open Google and type in ‘title loan company near me’ to get the best title loan.
- No Need For Credit Checks
The majority of loans involve running credit checks to make sure applicants are creditworthy and can meet the financial obligations in a timely fashion. The title loans do not include this part of the process, which is often stumbling blocks for applicants with poor or low credit scores. Provided you can prove a regular monthly income which will allow for a way to repay your loan and you already fully own your car, then you may be eligible for these auto title loans.
- You Are Still Able To Use Your Vehicle
When you take out this type of loan, it will mean you are giving the title of the vehicle up while repaying the loan back. However, this does not mean that you have to give up the car itself. The lender will treat the actual title of the car in the form of collateral, they will return the title to you on your final repayment. So, when it comes to traveling from A to B every day, your life will not change when taking out one of these loans.
- Costs Less Than A Cash Advance
Payday loans and cash advances are usually very expensive ways in which to borrow money. On the other hand, a title loan usually works out more cost effective and usually come with a lower interest rate. This has to do with that the loan is secured using the title of your vehicle. For this reason, the lender is not forced to charge a higher interest rate, because the title of the vehicle provides that extra security layer.
- Fast Repayment Schedules
Title Loans For Short Term Borrowing
You will know beforehand the amount that you will be required to repay as well as by when. Many applicants repay title loans on their next payday. However, certain applicants will pay the loan off over several months, especially if they have taken out a larger title loan.
A stand out benefit about the title loans, is that you usually get to choose the amount you would like to borrow, according to the value of the car. For example, if your borrow a lower amount, you are able to repay the loan faster and therefore reclaim your title on your vehicle.