Benefits to Expect With A Car Title Loan
There are quite a few benefits that come with title loans, and most of us know that these loans allow you to borrow cash even if you have poor credit or no credit history. That’s because your car’s equity is used as collateral for a loan, and lenders don’t focus on your credit score! Also, a title loan allows you to borrow cash quickly with loan amounts of $2,500 or more for qualified applicants!
Consider The Advantages Of Online Title Loans
Consider a situation where someone with poor credit needs a loan. We know that the applicant has little to no chance of getting approved with a credit score that low. Even a credit union or installment loan lender will probably deny them funding, as most of those companies only look at a borrower’s credit history. But did you know there is a scenario where someone with that same credit score could get fast cash by taking out a loan? Using their vehicle’s collateral, that person can get funded within a day or two of applying online. You can complete the loan process and keep your car even better. The lender will want you to hand over the pink slip, and you must pass a vehicle inspection.
The whole process of applying is most likely a lot easier than you would expect, and that may be the best advantage of title loans versus other loan offers. Getting a lending decision from a big bank or mortgage lender can take days or weeks. Even some payday advance services will make you submit many documents only to give you a few hundred dollars. With most services, you complete an easy application and look for online approval in minutes or hours. After that, you can expect an in-person vehicle inspection, but that is the last step before you get the loan proceeds. Of course, it pays to know your rights regarding a vehicle inspection for online title loans.
Car Title Loan Benefits & Advantages
You get your money quickly after an initial approval:
They don’t call it a fast cash loan for nothing! Most online companies expect to approve you in an hour or two. Many services will give you cash within 24 hours after a typical title loan online with no credit check or inspection.
Applicants can be approved with bad credit:
Who would have thought funding options were available to people with bad credit? We’re often told there is no chance of qualifying for title loans online with direct deposit if you have poor credit, but that’s not true. Most title loan companies will look past your bad credit history. When you apply for an auto pawn, you use the vehicle’s pink slip as collateral.
The lender will look at the car’s condition to come up with a loan amount:
Much like a situation where you don’t need good credit, most lenders will want to know the status of your car. Is it a newer car with lower miles or an older classic car? Is the original bank or credit union paid off? Do you own the vehicle clean and clear, and can you provide a solid pink slip? Is your car in decent condition, and can it pass an in-person inspection by a trained professional? Those are the most significant factors to consider when determining what a lender will allow you to borrow with a no inspection car title loan.
Online title loans are a safe way to borrow money and help you recover financially.
Did you know that title loan companies need to be licensed to offer to fund your loan? That’s good to see when you decide if car title loans are safe compared to other financing choices. Some forms of borrowing may be questionable, especially if you’re looking to get an online loan or cash from someone in your neighborhood that’s not licensed. Stick to legitimate ways to get some money and consider online title loans if you need a safe and effective way to borrow money based on the equity in your vehicle.
Most applicants can keep driving throughout the life of the vehicle title loan:
The standard protocol with a title loan is that you can keep driving your car, which is a considerable advantage compared to other secured loan offers. You must hand over the pink slip, but you can drive yourself to work or wherever else you need to go. After all, what good is borrowing money if you don’t have the means to get to work?
Secured loans have lower fees and interest rates than a payday loan or cash advance:
A car title loan will often lead to fewer fees and finance charges than what is standard with typical short term loans. As you use a pink slip to back the loan, a finance company can impound or repossess your vehicle if the loan defaults. So, they don’t need to charge as high of a fee as you expect with a payday or installment loan. Because of this diminished fee, they are regularly more affordable than a cash advance.
A title loan may not go against your credit if you find the right company:
You’re always going to have the risk of losing your vehicle to repossession if you fall behind on monthly payments. But that’s a worst-case scenario, and the advantages of car title loans can outweigh that if you budget correctly. If you have enough equity in your car, going with an equity lender over other online payday loan companies sometimes makes sense. Payday loans and cash advance companies will hit you with huge interest rates. Use your vehicle to your advantage and get the money you need! Find out what documents and information are required for a no inspection loan with Premier Car Title Loans, and avoid waiting days for cash. With our online application, you get the money you need, and all the rates and terms are broken down in easy-to-understand information.
Jessica has been working in the title loan lending industry since 2012. Before that, she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans, she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions related to short term loans!