When bills are due and you don’t have the funds to cover them, what are your options? For many, getting cash quickly doesn’t take the form of a bank loan, but rather a car title loan. And there are reasons that car title loans are a popular option for Georgia residents.
First, they can give you the funds you need to cover surprise expenses or stretch your budget until payday. Second, they’re easy to get approved for, often in as little as 20 minutes. But most notably, they can provide a better alternative to a traditional bank loan.
Here’s a quick comparison of car title loans versus bank loans and why it might make sense to opt for the former.
What Is a Car Title Loan?
The typical loan process usually consists of a pile of paperwork and documentation, collateral, and lots of waiting. This is most often the case when you apply for a bank loan.
However, a car title loan follows a much different protocol.
Title loans are considered short-term loans that are designed to fill in financial gaps for surprise expenses, immediate needs, or periods between jobs.
Instead of using your paycheck as proof of income, you use your lien-free car title as collateral. The lender gives you cash based on your vehicle’s equity. Because you’re using the car as collateral, lenders do not require credit checks or proof of employment to approve you for the loan.
Once you’re approved, the lender will help you set up favorable repayment terms to pay off your loan and any loan fees. Once repaid in full, you’ll receive your car title back.
Best of all, while you’re repaying the loan, you get to keep your vehicle and continue using it. Reputable lenders like Georgia Title Loans work with you every step of the way to help you pay off the loan and keep your vehicle.
Disadvantages of a Bank Loan
Bank loans can be favorable under the right conditions, but when comparing different loan options, many individuals find that car title loans offer several advantages over bank loans.
Complicated Application Process
For starters, getting a bank loan can be a lengthy process.
Banks require a lot of paperwork as well as proof of income and a credit check before approving you. In some cases, you may have to visit several banks and fill out several loan applications before finally getting approval.
This simply isn’t an option if you need cash quickly to pay for upcoming bills, surprise car repairs, or other immediate needs.
Hard to Get Approval
Bank loans can also be difficult to qualify for. They typically don’t lend to unemployed individuals because they have no guaranteed way to repay the loan.
Too Many Fees
And depending on your credit score and history, the interest rate on a bank loan can be higher than you’re willing to pay.
In some cases, a bank loan will also charge a penalty fee if you choose to repay the loan early. Repayment can be an excellent option to reduce your interest costs, but penalties can strip away this benefit and de-incentivize early repayment.
This isn’t always the case, so it’s important to check your loan terms carefully.
Why Consumers Choose Car Title Loans
The disadvantages of a bank loan are often the advantages of a car title loan. Here’s a brief comparison:
Where bank loans are slow-moving processes filled with bureaucracy and red tape, car title loans are quick, easy, and simplified.
At Georgia Title Loans, you can start the application process online, then complete the process in one of our branch offices. Our goal is to put cash in your hand in 30 minutes or less. No bank loan can compare with that kind of timeline.
Also, car title loans don’t have nearly the list of requirements that a bank loan requests. Because we use your car as collateral, there is no credit check or proof of employment required. This is one reason why car title loans are a popular choice among those who are between jobs or have no credit or bad credit.
Qualifying for a car title loan is a breeze. All you need is to be at least 18 years or older, have a valid driver’s license, and have a lien-free car title.
Tailored Loan Amounts
Once your application is approved, we determine your loan amount based on the value of your vehicle. Our loan amounts range from $200 up to $50,000, depending on your car make, model, and condition.
Before you sign the paperwork, we go over your loan terms to ensure you understand and accept the repayment plan. We work with each of our borrowers to create favorable repayment terms to fit your needs.
No Pre-Payment Penalties
Best of all, we do not charge early pay-off penalties. If you can pay off your car title loan early, we’re not going to hold that against you!
Can You Pawn a Motorcycle?
If you’re excited about the prospects of a car title loan but only have a motorcycle, you’re in luck! You can use your motorcycle title just like a car title to get a loan.
And if you’re wondering where to pawn a motorcycle, Georgia Title Loans is on your side. We accept motorcycle titles and follow the same process and requirements to put cash in your hand quickly.
Just like our car title loans, you can begin the process online and complete it at one of our locations in Atlanta, Conyers, Lawrenceville, or Norcross.
Where to Get a Car Title Loan in Atlanta
If you’re ready to think outside the bank loan, a car title loan could be in your best interest. It’s fast and easy to qualify for, and you get to keep your car while you’re repaying the loan.
Start with our online application today and let Georgia Title Loans get you the cash you need to make it to payday!