What Are Some Benefits to Expect With A Title Loan?
Most of us are well aware that car title loans and most other types of short term funding may cause you problems. If you do a quick search online you can real all sorts of stories about people who lost their car to a repossession or fell behind on a payday loan. These stories always end up in bad situations but an online title loan can work out well for someone in a specific situation. Consider an applicant with a credit score of 500 who needs $2,000 to pay for a new water heater. It doesn’t even make sense for that person to submit an application for a personal loan. We know they have 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 for funding as most of those companies only look at an 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? By using their vehicle’s collateral, that person can get funded within a day or two of applying online. Even better, you can get cash and still keep your car. The lender will want you to hand over the actual car title and you will need to pass a vehicle inspection. But in this case, a title loan may be the best choice.
The whole process of applying for an online title loan is most likely a lot easier than you would expect. It can take days or weeks to get a lending decision from a big bank or mortgage lender. Even some payday advance services will make you submit a huge amount of documents only to give you a few hundred dollars. With a title loan service, you will fill out an easy application and look for an online approval in a few 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 when it comes to a vehicle inspection. It’s also critical to know what happens if you face a repossession or fall behind on payments. For example in California you have a certain amount of time before the lender can sell your vehicle.
Let’s Break Down Why An Online Title Loan Could Be Good For You
You get your money quickly:
They don’t call it a fast cash loan for nothing! With most online companies, you can expect the be approved in an hour or two. Many services will give you cash withing 24 hours after the final vehicle inspection.
Applicants can be approved with bad credit:
Who would have though there are funding options available to people with bad credit? We’re often told there is no chance of getting an online loan 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 determine amounts:
Much like a situation where you don’t need good credit, most lenders will want to know the status of your car. Is the original bank or credit union paid off? Do you own the car clean and clear and can you provide a solid pink slip? Is the condition of your car great and can it pass an in person inspection? Those are the biggest factors to look at when you determine what a lender will allow you to borrow.
Most applicants can keep driving throughout the life of the loan:
There’s often a misconception that taking out a title loan means you have to hand over the keys to your vehicle. While that may have been the case years ago, it’s not true. The standard protocol now is you can retain possession of your vehicle. You need to hand over the pink slip but you will be able to drive yourself to work or wherever else you need to go. After all, what good is a car title loan if you don’t have means to get to work?
Lower fees and interest rates than a payday loan or cash advance:
An auto title loan will often lead to less 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 goes into default. So they don’t need to charge as high of a fee as what you expect with a payday loan or even an installment loan. Because of this diminished fee, they are regularly more affordable than a cash advance.
A title loan may bring less stress and worry if you go with 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 worse case scenario. If you have enough equity in your car, it sometimes makes sense to go with an equity lender over other short term finance companies. 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! With Premier, you can apply for fast funding and skip the frustration of waiting days for an approval. With our online application you get the cash you need and all the rates and terms are broken down for you in easy to understands ways.
Do Research Before You Use A Pink Slip As Collateral For A Loan
In the right circumstances, you can see some benefits of going with an auto title lender. We’re not saying it’s the best course of action for most people who need a short term loan. We always point to more reasonable choices like a bank loan if there’s ever a need for short term cash. Or you can turn to a friend or family member to see if they’ll give you money to make it through a financial emergency. Outside of those options, you tend to run out of viable alternatives. For those with equity in their vehicle it may make sense to look into a car title loan. But before you sign up with a company it pays to do your homework!
Jessica has been blogging about the title loan industry since 2012. Before that she managed a team of customer service representatives for one of the largest payday loan lenders 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 that relate to short term loans!