Advantages of Obtaining Car Title Loans
#1) You Don’t Need to Worry About Having Bad Credit Ratings
If you need a quick loan but have a poor credit rating, you can relax. Car title loan companies do not consider your credit score when determining whether you qualify for a title loan.
With such loans, the only collateral needed for you to get the money is your car. That’s how easy the approval process is.
Car title loan companies will typically provide this type of loan to you as long as the car you own is worth more than the size of the loan you want.
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#2) You Get the Money in Record Time
There’s no doubt about it; having access to an instant loan facility in the event that you find yourself in an unforeseen financial fix is comforting.
One of the reasons behind the incredible popularity of car title loans is the speed and convenience of the process, which many customers can attest to. The time it takes to get the money can come down to a few minutes.
Once you fill in your details in the application form, submit it, and have the car title company approve it, you receive the money on the same day.
It is for this reason that numerous customers have peace of mind knowing that in the event that they’re in a bit of financial trouble, they can rely on car title loans to bail them out.
#3) You Still Get to Use Your Car
The beauty of car title loans is that even after you have secured the loan, you still get to use your vehicle because the car title loan company is not interested in keeping your car locked up somewhere.
The car title loan company only keeps the title of your car, which serves as collateral just in case you are not in a position to pay back the loan. As soon as you pay back the loan, the loan company gives you back your title.
This way, you don’t have to worry about having no means of transportation after securing the car title loan. These companies are fully aware that in times when you are in a financial bind, the last thing you need is not being able to go work and make money. With car title loans, your work life goes on uninterrupted.
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#4) Stress Relief
No one is immune to the stress that comes with hard financial times.
In such situations, you need to find relief for your stress as soon as possible. This is where car title loans come in handy; to help you deal with sudden financial problems head-on and in a timely manner.
Because this is the underlying philosophy behind car title loans, they are accessible to just about anyone that owns a car.
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#5) They Are Generally Cheaper Than Cash Advances.
Car title loans use your vehicle as collateral for the loan you take. The value of your car should be higher than the size of the loan and since they hold on to the car title until the loan is repaid, they are assured that they will recover their money either way. This means they are taking on very little risk compared to a company offering a cash advance.
In the business of providing loans, less risk translates to less interest rate for the customers.
So, following the above logic, it follows that the interest charged by a car title loan company should be lower than that given with cash advances.
Additionally, the way in which car title loans are structured allows for you to be given an upfront payment schedule with a definite repayment amount and period.
#6) Numerous Options
The type of vehicle you are required to own for you to qualify for a car title loan is not limited to just a car. You have the option of using a motorcycle, an RV, or a truck as collateral.
The reason for this is that the only thing the car title loan requires is the title of a vehicle that can be used to recover their money in the event that you are unable to repay the loan.
Choosing a Car Title Loan Company
As is obvious from above, car title loans have numerous benefits. But for you to fully enjoy them, you need to choose a good car title loan company from the many that are in the market. To find the right one, there are a couple of things to look out for.
- A stellar reputation, trustworthiness, and years of experience are among the top qualities to consider when choosing a car title loan company. A company that has been around for many years has probably gained a good understanding of customers’ needs and how to cater to them effectively.
- Reading unbiased online reviews and customer testimonials will offer some insight into the quality of the services the car title loan companies provide and how they treat their companies. You stand to learn a lot from the experiences of other customers of the lender. If a lender does not provide any testimonials, that should raise a flag.
- When looking for a car title loan company, be sure to shop around and compare interest rates offered by a few companies in order to get the best rates. You can easily do this kind of research online by visiting the websites of the companies you are considering. Investing some time in making this comparison will help you make savings.
- Carefully read the terms and conditions and take note of any special fees charged. Car title loans are pretty cut-and-try. You need to only fill in your details on the application form, submit copies of your ID and physical address, and hand in your car title. Once the lender assesses your car value, a loan schedule is made and you’re given the money. There should be no extra charges.
Taking these into account will ensure that you choose a reputable and reliable car title loan company.
Guest Post by – Charlie Brown is a freelance content writer. He has written many good and informative articles on different categories such as technology, health, fashion, beauty, education, career, travel etc. He is very responsible towards his job. He loves to share his knowledge and experience with his friends and colleagues.