If you need to find some extra money in a hurry, you may have considered options like taking out a payday loan or trying to find a lender who will give you an instalment loan. As it turns out, however, there may be a better solution. If you own your car outright, you may be able to qualify for a car title loan. With these loans, all that you have to do is put your vehicle's title up as collateral for the loan, allowing you to get your money right away. The section below takes a closer look at the benefits of these loans so that you can decide whether or not they are the right solution for your situation.
Five Benefits Of Fast Vehicle Title Loans
1. You Can Get Your Money Quickly
Unlike traditional loans that take a long time to process, title loans are usually processed extremely quickly according to TNL Car Title Loans. In fact, you can usually get your money within hours or days of submitting your application. As long as you are the registered owner and have a clear title for your vehicle, you shouldn't have any trouble qualifying. Depending on the lender, you may also need proof that you have regular income. As long as you can meet these standards, however, getting your loan is usually just a matter of filling out the application and the paperwork provided by the title loan company. The company will also want to take a look at the vehicle. In many cases, they will take photographs of it. You will also need to bring the title of the vehicle along with you when applying for your loan. Once the process is complete, you can get access to your funds, often in as little as a day.
2. You Don't Need To Pass A Credit Check
If you apply for a traditional loan, the lender will pull your credit report to make sure that your credit score is high enough to meet their standards and that you have a history of paying your creditors on time. This can be problematic if you have blemishes on your credit report or if your credit score isn't as high as the lender requires. Title loans allow you to get around that problem since they don't require a credit check. As long as you have a free and clear title to your vehicle and can prove that you have regular income, you shouldn't have any trouble qualifying for one of these loans.
3. You Don't Have To Give Up Your Vehicle
One common misconception that people have about title loans is that you can't keep driving your vehicle after you get your loan. In fact, however, that is not true. When you take out one of these loans, you can keep using your vehicle exactly like you were before. You just have to hand over the title to the car to the lender. Once you finish paying off the loan, the title will be returned. That means that taking out one of these loans won't disrupt your everyday life since you can continue using your car for running errands, getting to work, or other activities.
4. Car Title Loans Are A More Affordable Alternative To Payday Loans
Payday loans are one of the most expensive options for borrowing money. Auto title loans, on the other hand, are usually a lot more affordable since their interest rates aren't quite as high. Because your title is being used as collateral for these loans, the interest rate charged by the lender is usually a lot lower. That means that you can pay less money in interest over the length of your loan.
5. The Loan Can Be Repaid Quickly
When you take out one of these loans, you know up front exactly how much money you have to pay and when your payments are due. In many cases, people are able to pay off these loans by the following payday. Of course, for larger loans, the repayment period may take longer. The total amount that you can borrow is determined by the amount of money that your car is worth. As long as you only borrow what you need, you should be able to pay the loan back quickly so that you can get the title of your vehicle back again.