No matter how well we plan our lives, we sometimes run into gaps in our finances to cover emergencies or unplanned events. Those who can get through life without needing a little extra cash are incredibly lucky people — but not everyone has that experience.
For those who need a way to get money quickly, but have very limited options from where they could get it, car title loans are a viable way to borrow money for a short period of time without penalty to your credit score. So, is a car title loan right for you?
You don’t need a good credit score to get a title loan.
If you’ve struggled with a checkered credit history, then you know that traditional lenders like banks will turn you down for a personal loan, no matter how small, just because of your credit score. Many people with lower credit scores have to shop around from bank to bank. Each time an institution performs a credit check, your score gets lower and lower.
However, even with bad credit, you can still qualify for a car title loan. Car title loan companies don’t check your credit, and only care that you have the means of paying back your loan. These companies work every day to even the financial playing field for those in need of cash.
If you own your own vehicle, you can get a title loan.
Instead of holding your credit score over your head to motivate you to pay back a traditional personal loan, you need only to put your current vehicle up for collateral on a car title loan. If you own your vehicle outright and have no other liens on your car’s title, you can get a title loan based on the value of your vehicle and your monthly budget.
Car title loan companies will hang onto your title for you for the duration of your loan, but you can keep your car keys and continue driving your vehicle. You will receive your car title when you’ve paid off the value of your car title loan, plus interest.
A car title loan is right for you if you only need a loan for a very short time.
A personal loan can have a lengthy payback term that you might have to agree to before accepting the loan money. However, car title loans are designed to be short-term loans, which allow you to quickly pay them back and get on with your life.
Generally speaking, car title loan companies will give you at least until your next payday, if not an entire month, to repay your loan from them. Many car title loan agencies offer flexible repayment plans and will work with you to determine the best loan duration for your situation.
Car title loans let you borrow a small amount of money, or a larger sum.
Depending on why you need to take out a loan, you may only need a couple hundred dollars. It hardly seems like time well spent to visit multiple banks to see if they can offer you financing, and most people dread calling family members to ask if they could borrow money.
If you need a small amount of money, from $100 up to a couple thousand, depending on the value of your car, a car title loan could be the answer to your financial problems. Plus, car title loans are awarded quickly, so you won’t need to wait hours, or even overnight, for the bank to contact you back to let you know of your approval status.
Car title loans are paid back to a local business.
When you borrow money from a major financial institution, like a bank, you might need to mail off your payment to an unfamiliar address. It’s hard to trust companies you’ve never worked with before, or can’t interact with in your community.
However, a local title loan company accepts your payments directly, either by dropping them off, sending them in the mail, or through special electronic processes like auto-debit or online accounts. No matter which method you choose to repay your loan, you can rest assured that the company getting your money is the very same one that you visited when you applied to take out your loan, and you can contact the financial experts there any time you have a question.
Car title loans are designed to help you.
If you’re in a bind financially and need some money to get you through, a car title loan may be the right choice for you. If you’re interested in a title loan as an option, grab your car’s title and drive down to your local car title agency to learn how you could leave with cash-in-hand the very same day.