The majority of adults across the country don’t have very much extra cash each month after their bills and regular spending. This leaves them in a difficult position if something unexpected comes up that needs funding, like an emergency medical bill or necessary car repairs.
For many, this situation means they’ll need to rely on a loan to get them through until they can save up enough to cover the costs. But not everyone can easily qualify for a loan as fast as necessary.
That’s where a car title loan comes in! Some lenders give you the option to use a vehicle as collateral to secure a cash advance, which is a great option for many people. If you’re still unsure if this is the right way to go, check out these four benefits of getting this type of financing loan.
1. Easier Qualification
For many people, the most appealing part of title loan options is that they are generally easier to qualify for than a traditional loan.
This means you won’t have to prove your credit score or other financial benchmarks. All you have to do is have a valid, qualifying vehicle with a legitimate car title to place as collateral for the loan.
2. Lower Interest Rates
Because the lender has a secure way to repay the loan (with the value of the vehicle), there’s much less risk involved for them. This means that you’ll likely see much lower interest rates.
Obviously, lower interest rates are a huge benefit as you’ll be paying much less over the life of the loan.
3. Simple Process
The process for securing a title loan is very simple and straightforward, as you can see here. Without the need to check a full financial history, the applicant can secure the funds much quicker. This is a huge benefit for those times when you need additional funding as quickly as possible.
4. Keep Your Vehicle
A misconception some have about car title loans is that you will have to turn over your vehicle when securing it.
Luckily, this isn’t the case and you’ll still be able to use your vehicle as long as you’re making your payments on the loan. The only time a vehicle is taken is if you don’t meet the agreement and start defaulting on payments.
Best Benefits of a Car Title Loan
Being in an unexpected situation where you need additional funding as soon as possible is an extremely stressful place to be. There are so many things to worry about, chances are the last thing you want to think about is how to get the money you need.
A car title loan is a great way to get what you need securely and quickly. You won’t have to worry about your financial history and make sure you meet all of the set standards for a traditional loan. Even if you do have the right situation, a title loan can still be a great option because of all the added benefits.
If you’re interested in learning more about smart financial choices and how to manage your money, check out our other articles today!