Six Benefits of Getting a Car Title Loan
Car title loans are increasingly becoming a convenient way of getting cash quickly for financial emergencies. While you have to be prepared to pay off the loans within short periods, they come in handy in several instances. Here are six benefits of getting a car title loan.
1. Refinancing existing loans
You can refinance title loans for what was paid to help save money and keep cash in your pocket. Typically, a car title refinance will give you the advantages of;
Lower monthly installments as these loans often attract lower interest rates than what you were paying for
A new payment plan that suits your current abilities
Getting more money on top of your current loan to help with an emergency
2. Easy application
Unlike traditional lending, car title loans have a simple application criterion that can be completed from the comfort of any location. All you will need to do is fill a short online foam to provide details such as:
Your driver’s license
Your contact information
Your vehicle’s title, make, model, and year
Your vehicle’s current condition and mileage
3. Fast approvals
Once you have submitted all the required details, the lender will quickly evaluate the value of your car and tell you how much loan you qualify for. This approval process only takes a few minutes, and you can qualify for as much as 25% to 50% of your car’s total value. Often, this is a significant amount, and the newer or more expensive your car is, the more money you will be able to borrow.
4. You keep your collateral
One of the primary advantages of opting for a car title loan is that the lender will not withhold your car. This gives it an edge over pawn shop loans, as once you have proven ownership of the car, you get to keep and use your vehicle, enjoying no disruptions to your lifestyle. The lender will only have the authority to confiscate your car if you fail to repay the loan.
5. No credit checks or guarantors required
If you are looking for a way to get a cash loan with poor credit, a car title loan is your best option. Here, lenders are not concerned with your current credit score as you get to use your vehicle’s title as collateral. You will also not need to worry about getting a guarantor as your car’s title provides enough security for the lender to enable you to borrow money in minutes.
6. Convenient payback duration
Most car title loans offer favorable repayment terms, and with competition soaring, you can negotiate further for a manageable payment plan. While these are not long-term loans, the instant access to cash when you need it urgently and the flexibility to pay your loan back over a couple of months is a huge convenience in many situations.
Car title loans are a fast and convenient way of getting money when facing a financial crisis and do not want to undergo the stringent requirements and long processes associated with banks and other financial institutions.