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Are you in need of some cash, but unsure of where to get it from? Do you need a loan with a quick turnaround to pay off some debt? If so, then you need to look into applying for a car title loan.
These loans allow you to get the cash you need quickly. Simply apply for the loan amount you need, then they’ll hold your car title as collateral until you’re able to pay the loan back.
See below for an in-depth guide on car title loans to see whether this is the right avenue for you to explore. Spoiler alert: it is!
What Is a Car Title Loan?
If you’re looking for some quick cash to cover the bills, you might find yourself at a bit of a crossroads. The dollar amount you need is too small to apply for a larger loan.
However, if you don’t come up with the necessary funds, you could be in trouble. If that’s your situation, then a car title loan can be the perfect solution.
Car title loans are loans that allow you to receive a small amount of money with the ability to pay it back quickly. That way, they don’t have any effect on your credit score or tie you up to any long-term payment plans.
You simply use the title on your car as collateral to receive the loan and pay it off within a 30-day window. The effort is pain-free and allows you a way to get the money that you need quickly and from a reputable source.
What Are the Risks of a Car Title Loan?
In short: there are virtually no risks of a car title loan. As long as you’re prepared to pay off your small loan in a 30-day window, you don’t risk any consequences.
Should you choose to not pay off the car title loan in time, then you risk forfeiting the ownership of your car.
However, car title loan companies are accommodating. They understand that life happens. They’ll help you figure out a payback method that makes both you and them comfortable.
What Are the Benefits of a Car Title Loan?
The benefits of a car title loan are plentiful. They make sense for a lot of people due to their quick turnaround, their loan sizes (which are small), and the ability to pay them off quickly.
See below for just a few of the benefits you’ll receive when you invest in a car title loan for your needs.
1. Short Turnaround
Perhaps you realized only days before a bill is due that you won’t have the money to pay for it that month. You have two choices: pay the bill late and suffer late fees or apply for a loan to cover it.
A car title loan allows you to get the money you need within the shortest time window. You can apply for most of them online, thus negating the need to step into the store (which saves even more time).
The quick application process allows you to get the money much faster than most other loans. It’s great for paying off bills and monthly expenses, allowing you to pay back the cost within a 30-day window instead.
2. Your Credit Score Isn’t Involved
This is probably music to your ears. Finally, a type of loan that doesn’t require any access to your credit score or credit history.
Car title loans are solely collateral-based. If you’re unable to pay off your loan within the time window that you agreed to, you’ll forfeit the title of your car. Therefore, there won’t be a penalty on your credit history.
Car title loan lenders also don’t use your credit scores to determine whether or not to approve or deny your application. A hard inquiry can remove up to five points off your credit score when a lender checks it. Those points add up quickly over time.
3. Comfortable Payback Model
One of the scariest parts of most loans is the uncertainty of how they expect you to pay them back. Will they spread it out over many years? Do they expect large monthly payments within only a year or two? Will it be front-loaded?
You don’t want to put yourself in a situation where you’re uncomfortable with the payback method.
A car title loan removes that from the equation. The scheme is easy, simply pay back the loan amount within 30 days and you’ll get your car title back.
4. You Can Still Use the Car
The best part about receiving a car title loan is that you’re still able to use the car while you pay off the loan. They won’t hold it from you until you pay it back or anything along those lines.
For that reason, there’s no setback to receiving a car title loan. You get the money you need right away, pay it off quickly, and get to use your car the entire time.
As soon as you pay off the loan amount, you’ll have your car title back as well. It will be as if the car title loan never happened in the first place!
Find a Car Title Loan for Your Needs Today
Now that you have seen several important aspects of what a car title loan can do for you and your family, be sure to use it to your advantage.
Take the time to think through how much money you need. Look around for car title loan providers near you and apply to the ones you’d like to work with.
Be sure to browse our website for more articles on getting title loans, as well as many other helpful topics that you will enjoy.