3 Surprising Benefits of Car Title Loans
For most people, there is always the possibility of a scenario where they may need emergency money fast. It could be an overdue bill, a car repair, or a medical emergency for yourself or a family member. There are several ways that you can get money fast, but among the easiest and most convenient would be a car title loan. Pretty much everyone owns a vehicle these days, and if you are one of them, you might be driving the solution to your quick-cash problem. Car title loans are one of the loans you can easily get, and if you want to take a closer look, have a peek at the surprising benefits of this loan below.
Bad credit? It doesn’t matter!
Perhaps the single most challenging thing to overcome when obtaining a loan from traditional financial institutions would be a not so excellent credit rating score. The great thing about title loans is that you won’t have to deal with the hassle of a credit check when applying for this type of loan. All you need is your car title and the most basic paperwork, and you’re good to go.
One thing that would be read as a difficulty would be if the amount you are looking for is more than the amount of the car itself. The usual requirements are proof that you are who you say you are, your car title, and steady cash flow. Once complete, you can get your loan approved in minutes.
Continue driving your car
The car is not kept in a lot as you pay off your loan, as only the car title document itself is kept physically in the hands of the lender. This is a huge advantage, and this is why you should always strive to make sure payments are kept up to date. If not, the car itself would be in danger of being taken away from you. The title of the vehicle is kept as collateral against any amount that you might borrow, and not the car itself physically. This means that you can go about your business without having to sacrifice transportation. Options such as title loans are convenient in situations where you need a bit of money immediately, just enough to cover small emergencies or to tide you over until your next pay.
Not only more convenient, but cheaper than most non-conventional loans
Although relatively still higher than a conventional loan, a car title loan is still a whole lot cheaper than a payday loan. Lenders that use car titles as collateral can afford to do so because they have the car as collateral, unlike other loans that are based on something else. Aside from this, you can dictate how much you can borrow so long as it does not exceed your car’s estimated monetary value.
Convenience-wise, this type of loan is unbeatable, especially in terms of speed and ease of requirements. More often than not, in today’s digital commerce, the whole transaction can be done in hours and purely online. Documents can be sent digitally, which means that you can complete the entire process using your smartphone. Imagine submitting all the requirements for your loan without even leaving your home! The speed and convenience of this type of loan are reasons enough for people to accept and turn a blind eye to additional fees.
With all of that being said, a car title loan is still not something you should pursue unless there’s an emergency. These kinds of loans are not to be used when going away on vacation. Continuously developing money management skills and making your income grow is still the number one way to make sure you do not even have to consider borrowing in the first place.