5 Advantages of Car Title Loans
Not everybody is prepared for a rainy day. It’s no secret that many people are living from paycheck to paycheck. When emergencies arise, and no friends or relatives can help financially, then what do you do?
Things may get rough at times. But take note that for every problem, there is a solution. If you are in need of instant cash and payday is still like two weeks away, there are certain types of loans that you can take out. One of which is car title loans. In general, they are far better than the others.
Haven’t experienced getting one yet? Here are the advantages:
Process Is Very Easy
Out of all the different types of financial products available these days, a car title loan is probably the easiest one to get. This is exactly the reason why more and more people are resorting to this type. As long as you have a vehicle, the title for it, and you can prove your ability to pay, you are all set. You can submit your application, and if everything is okay, you might be able to get the proceeds in just a matter of minutes.
Interest Rates Are Lower
Unlike unsecured loans, car title loans come with lower interest rates in general. Why? Because it is not considered as high-risk since you actually have collateral, which is your vehicle. If you are unable to pay, the lending company may get your car. This serves as their protection.
Credit History Is Not an Issue
Yes, that’s right. When applying for a car title loan, lenders do not usually conduct a credit check. This is another reason why the application process is so quick, and you can get the cash almost instantly. Again, this has something to do with having collateral. It also means that even if your credit score is not that good, you may still qualify.
You Can Still Drive Your Car
With car title loans, even if your automobile is the actual collateral, you can still drive it. That’s because it’s only the title for it that the lending company will have to hold. Once you are done paying off the loan, then you can get the title back.
Repayment Options Are Quite Flexible
This financial product also comes with flexible repayment options. You can choose a term that works best for you. You would also have the payment schedule right away, which allows you to prepare for the due dates ahead of time.
As a friendly reminder, you should never attempt to bite more than you can chew. If you borrow money, make sure that you are in good faith and that you can really afford the payments. Otherwise, you would lose your automobile.