Car Title Loans

If you’re like most Americans, you’re living paycheck to paycheck. Whether you don’t make enough money or you have too many expenses, this can make it difficult to get by. It’s also incredibly stressful. 

While it’s probably a good idea to start looking into financial management solutions, that doesn’t help you here and now. In fact, living paycheck to paycheck can put you between a rock and a hard place if you have a financial emergency. 

What can you do? What if you don’t have good enough credit to take out a personal loan?

Have you considered car title loans?

If not, perhaps it’s time to look closer at title loan services. Keep reading to learn more about the benefits of taking out these types of loans.

1. No Credit Check Needed

First, if you apply for a traditional loan, the first thing the lender is going to look at is your credit score and credit history. If your credit score is in the gutter, this process can tank your chances of getting the money you need. 

Your credit score is based on several factors, such as:

  • Debt to income ratio
  • Debt/bill payment history
  • Length of credit history
  • Bank balances
  • Credit card balances
  • Rental history
  • Types of credit
  • And more

If you have poor or limited credit, car title loans can be procured with relative ease. Your credit score won’t affect your ability to take out the loan. 

2. Easy and Intuitive Repayment Options

One of the best advantages of a title loan is that most lenders provide easy payment plans. You can pay the loan back in automatic installments or in one lump sum.

If you’re taking out a loan you plan to pay back in the next 30 days, most car title loan services can accommodate you. However, there are some companies that provide car title loans with terms as long as four years. This can be incredibly beneficial for borrowers who know they’ll need time to pay back the loan. 

3. Quick Cash

In most cases, no matter why you want a title loan, it has something to do with needing money fast. It could be to pay for:

  • Emergency vet bills
  • Car repairs
  • ER bills
  • Rent
  • Home repairs
  • Etc. 

When applying for a car title loan, you can get approved on the same day (usually in a matter of minutes). This puts quick cash in your pocket so you can take care of whatever financial emergency you’re experiencing. This can save you from missing a rent payment, going without hot water, etc. 

4. Your Car Isn’t Your Only Asset Applicable for Title Loans

Not all vehicles are eligible for title loans. For example, your car might be too old or have too little value. Alternatively, if you still owe a lot on the vehicle, you won’t be able to use it. 

Fortunately, one of the major advantages of a title loan is that your car isn’t the only title eligible for a loan application. Most title loan services provide a myriad of options. If your car doesn’t qualify you for a title loan, you could also use:

  • RV
  • Boat
  • Motorcycle 
  • ATV
  • And more

If for whatever reason your daily driver doesn’t qualify you for a title loan, any of the above vehicles could be a substitute. 

5. Easy Application Process

Above, we mentioned that one of the main reasons to seek a title loan is because it gives you access to quick cash. The reason behind this is the easy application process. 

First, you need to register your vehicle with the title loan provider. They can verify that it’s valuable enough to qualify you for your requested funds. They can also ensure that you don’t owe too much money on it. 

Then, you provide proof of steady income to show them that you have reliable money coming in so you can pay back the loan. Finally, you agree to the terms of the loan and the repayment plan. In most cases, this is the extent of the process.

6. Lower Interest Rates and Costs Than Cash Advances

Many consumers wrongfully assume that car title loans are expensive. Between the loan fees and interest rates, is it worth it to borrow?

Contrary to popular belief, car title loans are easily affordable. This is because you are providing a layer of protection on the loan in the form of collateral (your car title). As such, title loan services can offer respectable interest rates and terms. 

Unprotected loans and cash advances are far more costly.  

7. No Pawning Necessary

Some people ask how title loans differ from pawnshops. There’s one major difference – you get to use your vehicle while the money is borrowed.

Pawnshops require you to pawn your item. It will remain in their possession until you make good on the loan. 

Car title loans don’t take away the vehicle you likely depend on every day. You can continue to drive your car, even if there’s a lien on it. 

8. Peace of Mind

Perhaps the most important benefit of a car title loan is the peace of mind it provides. As noted earlier, there are a number of financial emergencies that can present themselves on any given day. Life is unpredictable at best. 

Acquiring a car title loan can be a simple problem to a financial emergency that would otherwise leave you without a paddle. Even if you need to scramble after the fact to pay the loan back, a car title loan will give you the funds you need to handle your business. It will give you some breathing room to solve the financial issues you’re facing. 

Are Title Loans the Solution to Your Problem?

If you’re having financial problems and need money sooner rather than later, applying for title loans might be your best solution. As you can see, it’s easy to apply, easy to pay back, and provides immediate funds. Just make sure you plan ahead to avoid making your financial situation worse. 

And if you’re looking for more tips and advice, check out some of our other articles while you’re here. Our blog covers everything car-related, from car title loans to maintenance and repairs.