There are times in life when financial emergencies hit us, and we are not prepared to deal with them. Sometimes these emergencies may be due to medical bills, school fees, car repair rent payment or any kind of pandemic like the Covid-19 that has caused huge financial loss. In such a crisis, a car title loan can be a source of quick cash for people who need money instantly. This can help you when you are out of funds.
Now Let Us Understand What A Car Title Loan Is:
A Car Title Loan is a secured loan where you can use your car title as collateral and get a quick and easy loan. The vehicle used can be a car, SUV or other vehicles. Car title loans is the quickest way to get emergency money. As long as you have a clear title to your car, you can get cash and easy repayment terms within a short period.
Such loans are a common way to get cash when you need it. This loan is often set up to serve your needs without any penalty being charged for early repayment.
How To Apply For A Car Title Loan?
It is very straightforward to apply for this loan. You have to bring the following documents to the location near you:
- Your vehicle for inspection.
- A clear title to your vehicle is necessary.
- You must provide proof of residency or utility bills.
- A valid government-issued id.
- Proof of income.
- The vehicle must be registered and insured in your name.
There are many benefits when you choose this type of loan. If a car title loan is something you’d like to consider because you need money immediately, below are some advantages.
1.Your Credit Score Does Not Matter
The title loan lenders temporarily keep the title to your car and repossess the vehicle if you fail to repay it. There is no need for them to base eligibility on your credit. It means that even if you have a poor credit score, there are still chances for you to get the cash you need quickly.
2. You Won’t Need A Lot Of Paperwork To Apply For The Loan
These loans are entirely based on your car’s title, unlike other bank loans, which require a lot of paperwork. Instead, the only documents you need to apply for a car title loan include your application, your car title, and proof of a residential certificate. The loan company takes care of the rest, and they’ll lend you the amount that your vehicle is worth, provided the car is in good working condition.
3. You Can Keep Your Vehicle
The money lenders will hold onto the title of your vehicle until you repay the loan in full, but you still get to keep your car. After all, you need that vehicle to work daily and the loan company is aware of that. Being able to keep your vehicle is a huge benefit of a car title loan. You only have to hand the title over to the lender and drive away – it’s that simple.
4. Car Title Loans Are Affordable Than Other Types Of Loans
Bank loans are tough to get and very costly, but car title loans are not. Your vehicle will be used as collateral for the loan, and since most of these loans are short-term, the amount of interest you’ll pay is low. Additionally, the interest rates are affordable, making such types of loans to consider when you need extra cash urgently.
5. The Loan Company Will Work Out The Perfect Payment Plan For You
Most companies that offer car title loans know that times are hard for many people, and, therefore, they work out to make sure the payment plan you receive is suitable for your budget. They will sit down, talk with you and discuss your situation to come up with a payment plan that works best for you. In this way, you don’t have to worry when deciding exactly how to pay back that loan.
So, whenever you think of borrowing money, you only have to fulfill the eligibility criteria and follow the loan approval process to qualify for a car title loan. The loan amount will be decided based on the value of your car.