What’s an Auto Title Loan?
A vehicle title loan is really a loan that you will get for placing your auto’s title up as a guarantee. They might be short-term lending products, in some cases no greater than Thirty days. Nevertheless, there are additional choices to choose from and flexible loan companies that might provide you with a loan setup that really works better on your finances. When you are getting these types of loans, the company can provide the funds that you want, plus they can often do so very quickly – at times in as little as an hour when you apply online.
Of course, when you are putting up the title of your vehicle, it can be a bit intimidating. However, if you take the time to find a high quality, reputable lender, it doesn’t have to be quite so scary. We’ll cover how to choose a good lender later in the article. For now, let’s look at some of the best reasons to choose an auto title loan.
Reasons to Choose an Auto Title Loan
Why would you choose an auto title loan rather than another type of loan? There are plenty of reasons. First, if you have bad credit, you will find that it can be next to impossible to get a loan from a banking institution. They don’t want to take the risk on you, and this essentially leaves you out in the cold and without the money that you need. If you have bad credit, then you probably don’t have any credit cards either, so you can’t just put the emergency, or whatever other expense it might be, on a card.
With auto title loans, you do not have to worry about your credit. Since you are putting up your vehicle as the collateral, the loan companies do not care about your credit. As long as you own your vehicle, you should not have any trouble getting a loan, although different lenders might have other requirements you will have to meet, such as having income.
Another good reason to choose an auto title lender in California is because you can generally get the money very quickly. Some of the lenders are able to get you the money you need the same business day – maybe even within the same hour. When you have a pressing emergency and you need money fast, this is one of the best ways to get it.
You might be thinking that you could just borrow money from a friend or a family member. While this might be a possibility, it often depends on how much money you need and how fast you need it. In addition, you have to remember that when friends and family lend money, it can strain the relationship, even when you pay them back on time. For your sanity and your relationships, it is generally better to avoid this whenever possible. You will also like that you were able to take care of your financial emergency on your own and without needing to rely on your network of family and friends.
Once you have the money in your hands, you can do with it as you will. There are no restrictions as to how you can use the money. You can spend it on a child’s college education, a dental or medical emergency, home repair, or anything else that you might need. The possibilities are wide open.
These are just some of the biggest and best reasons to choose an auto title loan. However, before you proceed, you need to make sure you are working with a high quality, trustworthy company that doesn’t engage in predatory lending.
Choosing a Great Auto Title Lender
The company that you choose for your auto title loan needs to be transparent with the terms of the loan. You have to make sure you are working with a reputable company that is able to answer all of the questions you have regarding the auto title loan. Since this is likely your first time getting one of these loans, you probably have quite a few questions. If the company is evasive with their answers, or if they don’t know the answers to the questions you are asking, you should start looking for a different company.
It is important to look at the rates when you are choosing a title loan as well. Higher rates mean you will be paying more in interest, so you should always try to find the lowest rate possible. You might not have too much choice, as the lenders tend to keep their rates very similar, but you should still take the time to compare the rates, along with other features and factors about the lender.
If you take the time to find a quality company, and you understand the terms of the loan fully, you will have more peace of mind when it comes to actually getting the loan. You will know everything it entails and what you need to do in order to pay the loan and satisfy the terms of the contract.