Car title loans are linked to a number of advantages. This is the reason why it has become increasingly popular for a number of different people.
1. Easy Access To Cash
Car title loans are designed to assist people in a time of financial difficulty. It provides cash quickly and conveniently at a time when you need it the most.
This is the type of loan that can assist you in dealing with a financial issue, by offering you with instant cash to solve your immediate problem. This involves solving all types of emergencies that can occur when your paycheck is only due in a few weeks.
2. Access To Money Fast
The process of an application along with approval of your car-title loan takes place quickly. In fact, if your loan is approved you can expect money in your bank account within one to two working days. In comparison to other loan types, this is relatively fast. This loan does not involve making a number of applications at different financial institutions or having to wait in a line at your bank.
As soon as the loan for your car title is approved, the vehicle will then be inspected in order to determine its value.The lender will first discuss with you what is involved in determining the value along with explaining to you the Terms and Conditions of the car title loans.
The efficiency of processing car title loans and the approval has to so with simplicity of this type of loan and the way in which it has been designed.
3. Minimal Requirements
To process this loan, you need a car that you actually own advice TNL car title loans. This loan does not require credit checks or a bank account. It is the car that you use in the form of collateral for the loan which actually matters.
For this reason the loan process is simple and you can receive cash within as little as 2 days. The only credentials required includes your personal information, your car title and the car during your application in order to assess the value of the car along with the car’s photo identification. Within 1 to 2 days your loan will be processed, taking you one step closer to solving a financial emergency.
Other loan types require background checks and credentials before approving the loan. this will often take time and is one of the main reasons why many people now turn to car title loans for a solution to fast cash.
4. You Get To Use Your Car As Usual
This type of loan differs from using a pawn shop in the way that you can carry on using your vehicle, even though you have used it in the form of collateral.
The only requirement is that you need to handover the title of your car. You will need to ensure you keep to the payment plan to prevent repossession of your car.
If you use a pawnshop you will be forced to leave your car there until you have managed to pay your loan back in full. Only then will you be able to gain ownership of your car.
5. Credit Score
As stated above, the only credentials and documents required are basic personal details, photo identifications of the car, the car for an inspection and the title of the car. This type of loan revolves around the fact that car titles are used as collateral.
Essentially your car is the source of”security” for the loan. This is the reason why the lender is not interested in credit scores of borrowers. The only requirement is a car title.
When considering traditional loans or other loan types, your credit score is one of the most important factors when it comes to the approval of the loan. This is the reason why the car title loans are attractive to people that own their own cars.
6. Cheaper Than A Cash Advance
A car title loan is cheaper than the cash advances. an annual percentage-rate (the real cost linked to borrowing) of the cash advances are set at around 400% to 450% compared to a 300% annual percentage-rate for the car title loan. For borrowers who are looking for a loan with a lower interest rate, a car title loan is much lower when compared to a cash advance.
7. Easy Repayment Options
The car title loan provides different repayment options. This includes an over-the-counter physical payment, online payments along with others. In comparison to other loan servicing, these loans are efficient and flexible. You are able to make your payment when it is convenient for you. This also makes the car title loans sought after.
8. Minimal Stress
A car title loan can offer you with a solution to a pressing financial emergency. You also won’t need to worry about what your credit score is.
Amila Gamage Wickramarachchi is the founder of this blog where she shares her parenting and lifestyle experiences. She is an engineer and a trainer who works in the construction industry. She is the founder of Sihela Consultants.(www.sihelaconsultants.com)