If you’re in a bit of a financial bind right now, you might be looking around for your options. There are more than you might know about, which is great because it means that you should be able to apply for a loan and get it relatively quickly.
Some loans are better than others, especially if you’re thinking short-term to tide you over. With this in mind, let’s take a look at the benefits of applying for a title loan so that you can determine whether it’s a good fit for your situation or not.
Table of Contents
Advantages of Applying for a Title Loan You Should Know
1. It’s Quick and Painless
The biggest advantage of applying for an auto title loan is that you get the money quickly most of the time. The majority of lenders will ask you to fill out a simple form, usually online, which will allow you to get your money a lot quicker than other types of loans available.
It’s important to remember at this juncture that typically, the loan is less than the value of your car. If you’re in need of a larger loan than this, you’ll want to explore other options. However, an auto title loan is a great choice if you need money, and you need it quickly.
2. Lender Won’t Ask for Background
The vast majority of the time when it comes to personal or short term loans, one of the first things that the lender will ask for is a copy of your credit history and score. For many of us, this can be stressful, because we might not necessarily have the best credit history to show.
This is another benefit to applying for a title loan. Again, most lenders out there only need to see the title or your vehicle, and to be able to verify that you’re the sole owner. They aren’t interested in seeing your credit history, which is why it’s a great option if you don’t have a good credit score. Loan approval is not based upon your credit score, unlike many other loan centers and traditional lenders. No credit check auto title loans offer flexibility for people with even poor credit backgrounds. You may choose from a number of plans including interest rates and length which suits your unique financial situation.
3. You Keep Your Car
Similar to if you were to take out a home equity loan, you still get to keep using your car even though you’ve taken out a short-term loan against its value. This is great if you use your car every day to get to work and to run errands and don’t want to have to give it up.
Other lenders out there will need to keep some sort of collateral for the loan, depending on the type of loan. This is another advantage of taking out a loan against the value of your car.
4. Flexible Repayment Options
The last benefit to applying for a title loan is that most of the time, the lender that you’re working with will be able to accommodate a number of different repayment options. This means that you can get your money quickly and spend it on what you need, without having to start thinking about paying it back straight away.
Not all loan types out there offer this level of flexibility and understanding.
Applying for an auto loan is a great way to gain access to funds when you need them, and quickly. Check them out online today and find your best local lending options.
