save money

Breaking News

Car Title Loans – Basics, Benefits and How to make the right choice

Car title loans are a type of secured loan where the borrowers use their car as collateral. The borrower must allow the lender to place a lien on their car title and surrender the hard copy of the title temporarily for the loan. Once the loan is paid back, the claim is removed, and the title is returned. There may be a repossession in case of non-repayment.

Car title loans are short term and often given very quickly. The following are the features of car title loans:

  • Private and discrete
  • Fast and easy
  • No pre-set limit
  • Zero credit checks
  • Easily accessible
Car title loans are available easily and can be applied for by anyone. Such loans don’t require credit checks or too much paperwork. If you pay back your car title loan fast, there won’t be much effect on your credit score either. This is possible as the repayment period is concise, around 30 days. The risk of the loan is balanced by the title of the car.

Online Car Title Loans

You can find lenders online very quickly through online car title loans. Such loan applications are processed online. If you give all the required information, you will get the funds almost immediately. The funds may come in a day or two or within 15 minutes of your approval. Your personal information along with vehicle information like model, make, VIN, colour, mileage and insurance is needed. The insurance is critical in a car title loan and you may have to have insurance if you don’t already do. Once the form is submitted the title must be provided. The title of your car must not have any liens on it, and the vehicle must be wholly owned by you. Once the application is submitted, you will get a call or email on how to proceed forward. Click here

How can Car Title Loans be Beneficial?

There will be times in your life when you may need fast cash. Unexpected bills, additional expenses or contingent events may create a financial crunch. At such times, a car title loan can tide you you’re your financial difficulties. The benefits of a car title loan are as follows:
  • Credit does not matter: Car title loans don’t require a credit check, hence are also known as no credit check loans. Most loans will check a borrower’s creditworthiness through their credit scores. But a car title loan does not function that way. They are based on your car title which you offer as collateral. Lenders will not ask to see your line of credit, and you can borrow even if your credit score is terrible.
  • Quick and easy: Car title loans are convenient because you can get the funds very quickly. The process is natural and very less paperwork is involved. Once you submit the form, you can get the funds fast enough. These days the application and approval process is online which makes the whole loan application and getting the fund's process more quickly.
  • Owner of the car: All you need for a car title loan is to be the owner of a car, truck, SUV or RV to qualify for a car title loan or an auto title loan. This loan is not based on your credit, but the vehicle that you put in as collateral. A wholly owned vehicle and a steady income source can quickly qualify you for a car title loan.
  • Cheaper than a cash advance: A car title loan is less expensive than a cash advance as there is security in the form of collateral, which is the car.
  • You still get to use your car: Even though you have kept the car as collateral in a car title loan, you are free to use it and drive it around. You do not need to physically deposit the vehicle with the lender. It is only the title of the car that is to be deposited with the lender. This title is also returned once the loan is paid off in full.
  • Reduced stress: Life can be difficult at times, and we may be strapped for cash. In a financial hardship, when you need quick cash, a car title loan can ease a bit of your stress. It allows you to quickly borrow and use the money without worrying about getting a loan from traditional sources.

How to Choose the Best Car Title Loan?

  • Detailed quotes: Look for car title lenders that will give you an exact quote for the loan and not just a vague promise of approval and access to funds. Keep the detailed quotes on hand for comparison to choose the best option.
  • Interest rates: Car title loans require repayment of the principal plus the interest. The interest on such loans is slightly high due to the higher risk and short repayment time. You must pay attention to the interest rate on loan and pay it back as soon as possible.
  • Use your resources: Perform research on the physical locations that offer car title loans as well as online websites. The more your search online, the more are you likely to get better rates. Compare the prices and then decide which loan or lender you would want to go with.
  • Follow up: When it comes to securing loans, there are only limited actions that you can perform online. Direct negotiations with agents are better as they can give you good deals. So, pick up the phone and have that conversation.
Car title loans are simple to get, and you can use the money that you need to manage your financial difficulties.

Enter your email address:

Delivered by FeedBurner