4 Advantages Of A Car Title Loan
When you need money quick, one way to get that money is through a title loan. Getting a car title loan has a few advantages to it that you should be aware of.
#1 Quick Qualification Period
With a title loan, you are putting something up as collateral in order to get the loan you need. If you own your vehicle in full, then it can be really easy to get a title loan. You just have to show the bank the title of your vehicle, and they will use their database to determine the value of your vehicle and thus how much they will loan you. You don't have to go through some long, drawn out qualification period when you get a title loan.
#2 Credit Scores Are Not that Important
With a title loan, your credit score is not that important. Even if you don't have a great credit score, you should be able to get a title loan. You are able to get a title loan even without a high credit score because the lender has something of value – the title to your car—that they get to keep and get the money back from if you fail to pay. The risk behind the loan is minimized because you are putting up collateral for the loan.
#3 Steady Income Matters
When you apply for a title loan, having a steady income matters. Although you are putting up collateral for the loan, ideally the lender wants you to pay them back with cash, not with another object. They want you to be able to pay back the loan and will use your salary amount to determine how much of a loan you will get and how the payback terms will work.
#4 You Keep Your Vehicle
When you take out a title loan, you don't have to give the lender your vehicle. You only have to give up your physical vehicle if you fail to pay back the loan. Until then, you can use the vehicle just like you normally would. Assuming you pay back the loan, nothing will happen to your vehicle. You only lose your vehicle if you default on the loan and the lender moves to repossess the car to recoup their loss.
A car title loan is a quick and easy way to get some quick money, regardless of your credit score. As long as you have a vehicle that has some value to it, and you have a steady paycheck, you should be able to get a car title loan.