Car title loans have become an increasingly popular way to get fast cash. Just like any loan, though, it has its pros and cons. For example, you must own your vehicle outright (no loans or liens) to use it as collateral for these types of loans. In addition, laws for these lenders vary by state and are not always regulated, so you need to read and understand all the terms and conditions before signing any paperwork.
Car Title Loans
One of the benefits of using a car title loan is that you don’t need to have a good credit score. They don’t even check it, unlike when you try to qualify for more traditional bank loans. The personal property you’re using as collateral is already paid off. If you were to default on the loan, the lender would take possession of your vehicle or raise your interest rates.
When they take your vehicle, they can sell it for the loan amount. If it sells for less than what you owe, you may be responsible for the remaining balance. However, even if it sells for more than the loan amount, the lender can keep the profit.
No Credit Check
Car title loans are generally processed within days because no credit check is required. Qualifying for these loans usually only takes the lender assessing your vehicle to be sure it’s worth the collateral you’re requesting. Aside from that, there are no other hoops to jump through because the lender isn’t taking much risk – you are. The amount you can get depends on the value of your car.
Short Term Repayment
Usually, car title loans are short-term (a few weeks to a few months). At first, the interest rate can be low, but higher interest rates will kick in if the loan is extended.
Do Some Research
Using your means of transportation as collateral can be risky, but not if you choose a credible company. To get the best rates, always shop around and get detailed quotes. The more companies you compare, the more likely you will get a rate that will fit your budget. Also, pay close attention to the interest rates, and pay your loan off when you agree to avoid additional charges. Also, avoid lenders with unclear terms, evaluations of your vehicle, and who don’t offer the customer service you need. Overall, car title loans are a short-term option to get fast cash. Just be sure you do your homework.
Fast Cash Loan Centers
Do you need some cash quickly for an unexpected expense? Fast Cash Loan Centers can help with a car title loan. Our representatives will step you through the quick process, and you’ll soon have the cash in hand you need. Contact one of our local centers today.