Benefits of Title Loans

Title Loans

A title loan is an amount of money you can borrow for a short time by offering a vehicle as collateral to the creditor. In the United States, most people obtain title loans by giving lenders titles to their cars. So you may have heard of these loans exclusively as car title loans.

However, title loans can be obtained with pickup trucks and motorcycles as well. Once you get your money, the title loan is typically required to be paid back in 30 days.

Title loans are quite common in many states. If you are considering obtaining a title loan yourself, here are several benefits you should know about:

Title Loans are Quick and Easy to Get

Compared to many other secured types of loans, title loans are rather easy to get. You are only transferring the title of your vehicle, which is less of a hassle to do than transferring the title of other types of properly, like a house. You don’t usually have to visit a title loan lender multiple times to get a loan approved, as with a bank. As long as your vehicle is in relatively good condition, and if you have a source of income, your loan will be approved and granted. It’s possible to receive a title loan in less than 5 days.

Great When You are in Dire Need of Cash

Life is unpredictable. You never know when you might need a small amount of cash suddenly for things like emergency home repairs or for emergency medical bills. Most big league lenders and banks do not offer small cash loans that range between $1,000 and $10,000. For folks who don’t have ready access to similar amounts of cash when in need, a title loan could be the only hope. As mentioned above, a title loan can be obtained quickly too. Therefore, this option is quite perfect for people who really need cash right away.

Title Loans are Granted Even for Borrowers with Bad Credit

Title loans are secured loans. What lenders care about is the state of your vehicle, not the state of your credit history. Even if your credit history is really bad, you can very likely obtain a car title loan. If conventional lenders reject your loan application because of your bad credit history, you can seriously consider a title loan. As long as you have a good vehicle to offer as collateral, most lenders are happy to give you the money you need quickly.

Flexible Payment Methods

You have to repay car title loans usually within a month. However, if that’s too much to repay, many lenders allow monthly instalment payment plans. You can take your time to repay the loan in full. However, make sure these monthly instalment plans do not drag on for too long. If they do, you will have to pay a lot in interest.

Generally speaking, obtaining a car title loan is a much better option than selling your vehicle for cash in a hurry. Title loans make sure that there’s a way to get your vehicle back in a month or a matter of months. If you sell your vehicle, you will be without vital transportation to get to work. Also, buying a new one will be very expensive too.

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