All types of loans have pros and cons. Some are intended for businesses or people who want to financial a house. Others are intended for short-term borrowing to deal with some immediate financial issue. This is what a title loan is. You should know three of the major benefits to gain from a car title loan.
You Get the Money Fast
Around 75 percent of people do not have enough savings to handle an emergency. This means that a valuable benefit of title loans is the ability to get money fast. A loan through a traditional bank or lending institution can take a very long time to be processed. You could be waiting for weeks or months to find out if you have been approved. Many things can go wrong during that time. Title loans provide a good alternative.
The approval process for a title loan is incredibly basic and can often be done mostly online. Some lenders will actually approve someone for a loan within an hour and then provide the money the same day. This can really help when someone is facing eviction, repossession or another emergency that must be resolved immediately. Title loans are one of the few ways to borrow money fast.
Qualifying Is Very Easy
A second benefit of titles loans is that qualifying is very easy. The requirements to get a title loan are very simple. Nearly anyone who owns a vehicle can qualify. You are not always limited to cars. You might be able to get a loan based on a motorcycle or a boat in certain situations. The lender is not going to look deep into your financial background or assess how much money you are making. The loan is based on the value of your car.
This means that you can get a title loan even if you are dealing with bad credit, have overdue bills or are facing other financial challenges. The amount you can borrow is a percentage of what your car is worth. The only real thing you need to have is a clean title free from liens or other issues.
Although consumer borrowing is increasing, you still do not want to hold on to debt for longer than you have to. A final major benefit of title loans is that they are repaid quickly and efficiently. Many types of loans are intended to last for years. This means you will constantly have the burden of payments on the loan the entire time. You could end up in financial trouble again because it takes so long to pay down the loan. Your life could change during the term of the loan. Title loans are different because you can often repay them within just a month or two. This allows you to solve your financial problems and break free of debt quickly.