The Benefits and Advantages of Title Loans
What if the key to quick cash was already in your driveway?
A car title loan offers access to quick cash and many other benefits. Unfortunately, many people don’t understand what a title loan is or how it can be a responsible way to overcome short-term financial challenges.
Keep reading to discover the benefits and advantages of title loans.
What Are Car Title Loans?
As the name implies, a title loan is secured by using the clear title to your car as collateral. Provided you meet the requirements and are approved, you can get the cash you need in short order.
It’s true that should fail to pay back the loan, the lender could get your car. But so long as you make your payments on time, you’ll enjoy the advantages from one of the best loans around.
Let’s dive in and explore the many benefits and advantages of a title loan.
Nice and Fast
It sounds like something from an ad jungle, but there are times you need cash and you need it now. One of the biggest benefits of title loans is that you can get them so quickly.
In fact, in most cases, you can complete the required paperwork within minutes and have the cash you need in hand in 30 minutes or less! Traditional lenders, like banks, typically take much longer to approve and process a loan. This means you can be waiting much longer to secure the funds.
If you need cash and you need it in a hurry, title loans are one of your quickest and safest ways to get that money.
Very Little Paperwork
What’s the worst part of almost any loan? The answer is the paperwork. A mortgage, for example, involves so much paperwork it might feel as if you’re never going to be living in the house.
Compared to most other loans, title loans require very little paperwork. In most cases, all you have to do is bring in the vehicle with clear title that you’ll be using as collateral along with a valid state driver’s license. Then, you complete a very simple application.
This is a large part of why title loans can get approved so very quickly. By streamlining the paperwork requirements, lenders make it easier to complete everything and get the money that you need.
No Credit? No Problem
The fact that so many lenders look at your credit score can seem downright unfair. That’s because all it takes is a little bit of bad luck for a good credit score to start tumbling downwards. And pretty soon, it can be difficult to get approved for almost anything with a bad credit score.
With car title loans however, bad credit or lack of credit is not a problem at all. Your car serves as the collateral for the loan. This means as long as you own a car, you can likely secure some or all of the cash you need!
No credit check and quick cash make title loans one of the most reliable ways for you to access additional funds at any time.
You Keep the Car
Sometimes, borrowers get nervous when they hear about their car serving as collateral. That’s because the phrase implies that their vehicle will be impounded somewhere until they pay back their loan.
Rest assured that with a title loan, you will still be able to keep your car while you pay back the loan. The lender will take your car title as collateral, not the vehicle itself. Of course, it is your responsibility to pay the loan back, or you could well lose your car to the lender.
Keep in mind that you can get a title loan on almost any kind of vehicle. In addition to cars and trucks, you can get a title loan on a motorcycle, and even an RV.
Cheaper Than Cash Advances
Many people have heard about payday loans as another means of getting cash quickly. Which brings up an obvious question: why should you pursue a title loan rather than a payday loan?
The short answer is that title loans will save you money in the long run. Payday loans typically charge much higher interest rates, and generally have much shorter terms. Most must be paid back within 30 days.
Title loan interest rates are typically much lower because the lender is holding your car title as collateral. This reduces their risk and allows them to provide you with lower interest rates than a common payday loan.
What’s more, unlike payday loans, title loans bring considerably more flexibility as it relates to repayment. It’s not uncommon for a title loan lender to extend your payment plan in order to help you meet your financial obligations.
Easy to Pay Back
As we said before, a payday loan typically requires quick repayment. It’s in reality more of a cash advance since most payday lenders require their money back (with often exorbitant interest) within 30 days.
A title loan, by contrast, is more like a traditional loan. That means that you can pay it back over time, and make larger or smaller payments as your budget allows. This arrangement is usually much more convenient for borrowers.
Title loans provide you with all the benefits of quick cash and traditional loans, all rolled up into one.
The final benefit of a title loan is the most obvious and perhaps the most important. And that benefit is that you can eliminate stress from the entire borrowing process.
With most loans, you’ll end up experiencing significant stress during the process, beginning with your credit score and whether it’s good enough for you to be approved. And with payday loans, you’ll feel even more stress when you realize how much more you will ultimately have to pay back.
With title loans, you don’t have to feel immense stress about credit scores or interest rates. You don’t even have to stress about waiting for your money. Instead, you get quick cash, a fair interest rate, and flexible repayment terms.
Life is stressful enough. Why should you have to stress over the solution to a short-term financial challenge?
Advantages of Title Loans: Where To Go?
Now you know about the many benefits and advantages of title loans. But do you know where to go to get the money you need?
Georgia Title Loans offers title loans in metro Atlanta, with offices conveniently located in Lawrenceville and Norcross. If you’re experiencing a short-term financial challenge and need cash now, all you have to do is apply today!