Anybody can get into a financial bind sometimes and need extra cash. When this happens to you, it is good to know you have options. If your credit isn’t great or you need money quickly, title loans might be your best option.
1. They Don’t Look at Your Credit Score
Because title loan lenders temporarily keep the title to your car and can theoretically repossess that vehicle if you default on the loan, there is no need for them to base eligibility on your credit. This means that even if you have a low credit score, it may be still be possible for you to get the cash you need quickly.
Of course, you’ll still have to prove that you can pay back the loan, but you can do that without having a high credit score.
2. You Won’t Need a Lot of Paperwork to Apply for the Loan
Loans based on the title of your car are unlike bank loans, which require a lot of paperwork. Instead, the only items you need to apply for a title loan include photo identification, your application, your car title, and proof that you have a steady job. The loan company takes care of the rest, and they’ll lend you the amount that your vehicle is worth, provided the car is in good condition.
3. You Can Still Drive Your Vehicle
The loan company will hold onto the title of your vehicle until you pay back the loan in full, but you still get to keep your car or truck. After all, you need that vehicle to work and pay back the loan, and the loan company knows that. Being able to keep your vehicle is a huge benefit of a car title loan. You simply hand the title over to the loan company and drive away – it’s that simple.
4. They are More Affordable than Other Types of Loans
Bank loans are difficult to get and very costly, but title loans are not. Your vehicle will be used as collateral for the loan, and since most of these loans are short-term, the amount of interest you’ll pay is minimal. In addition, the interest rates are usually very reasonable, which makes these types of loans something to consider when you need extra cash in a hurry.
5. They Work Out the Perfect Payment Plan for You
Most companies that offer title loans realize that times are hard for many people, and, therefore, they work hard to make sure the payment plan you receive is convenient for your budget. They will sit down with you and discuss your situation to come up with a payment plan that works for you, meaning you’ll have fewer worries when deciding exactly how to pay back that loan.
If you need more time, they can usually provide it to you, because each loan is personalized to the customer’s needs.