If you need to get your hands onto cash quickly without having to worry about undergoing a credit or employment check, you might be considering the world of auto title loans. In exchange for letting the lender hold your title until you pay back the money you borrowed, they will put cash in your hands.
For those who are unemployed or have bad credit, or those that cannot wait for a bank to give them a loan, this is a common approach that is embraced. Keep in mind that this is generally only used for short-term loans that are paid back within a month or less.
The Basics of Auto Title Loans
This is a simple approach to getting cash quickly without having to worry about jumping through a ton of hurdles. The loan is secured by hanging onto the title of your vehicle until you get it paid off in full, plus the interest that has accrued.
If you don’t pay the title loan back, the loan company will take possession of your vehicle and use it as a way to recoup their investment. They do this by hiring a repossession company to take your vehicle and store it until they can get it sold.
Unleash the Benefits of a Title Loan
There are all kinds of opinions that you will see when it comes to these types of loans. To help you determine whether it is something that will help you instead of break you, we have outlined the top benefits that you can take advantage of.
· The lender is not concerned with your employment or credit score.
This means that if you are unemployed, have bad credit or even no credit history, an auto title lender is still willing to take you on as a customer. If you do not pay your loan back, they have the right to take your vehicle which is all the assurance they need.
· Approval is quick, usually less than 30 minutes.
This is because the lender does not spend time running your credit as this is a type of secured loan where your vehicle is the collateral. As long as you own the vehicle and don’t have any liens, you can expect a rather quick approval process.
· Flexible repayment terms are based on your specific needs.
There are two types of title loans, those that are meant to be paid back in a single installment and those that are paid back over time with multiple installments. Depending on your needs, you have an option to repay the loan on terms that you can be comfortable with.
This is a more expensive route to take as the interest can be higher than traditional loans, but it can definitely help you out when you find yourself in a bind.