Emergencies are a mainstay in life. Financial budgets are drawn out to monitor our spending to the last cent yet more often than not, individuals find themselves in situations where they need financial help. Cars break down, family members get sick and in all these circumstances a quick influx of cash is needed to help. Here is where title loans come in.
What is a Title Loan?
A title loan is a short-term loan that is acquired when the lender places your property under lien for some time in exchange for cash. The amount given is around 35-50% of the property value. Title loans have a short repayment period and earn relatively higher interest rates. Most title loans today are guaranteed by cars, trucks, boats, or trailers as collateral. Depending on the value of your vehicle, you may receive a title loan of up to $6000.
Why Are Title Loans Growing in Popularity?
1. There is a lack of Strict Credit Requirements
Title loans are easy to obtain because lenders do not require a lot of information from the borrower. Traditional loans required a background check, a credit score check, as well as a lot of collateral. Those needing a title loan have to confirm ownership of the car to be eligible for the loan. Clients with bad credit histories can comfortably apply for title loans without having to worry about the baggage of their past credit.
2. Simple Application Process
The application process may be done online or in person. With an online application, the only challenge is that you may have to mail the car title into the office. With in-person applications, the process is seamless and quick. Traditional loans would take up to 2 days to be completed. Title loans, however, take a maximum of 24 hours to process without any additional expedition costs.
3. “Use as You Pay”
Once your loan is processed, you can continue using your car without having to hand it over. Your title acts as collateral allowing you to continue using the car as you pay off your loan.
4. Fast Payouts
Payouts are done as quickly as 30 minutes to an hour of finishing the application process. Compared to traditional loans, title loans offer the best solution when in need of a quick financial breakthrough.
Genuine Reasons to Apply for A Title Loan
Medical Expenses
Medical collectors can be relentless in their pursuit of bills. A title loan may come in handy in situations where you need to settle medical expenses urgently. The fast turnaround time comes in handy when you need to pay for medical expenses to avoid heaping of the bills. Getting a title loan will ensure you can get medical attention without ever ringing calls from medical collectors.
You Need to Fund A Business
Small business owners can attest to the fact that liquidity goes a long way in ensuring the business stays afloat. A title loan is ideal for businesses because it allows the business owner to attain the bottom line while enabling them to find a way to repay the loan. All businesses would do well to make use of title loans to ensure that the business keeps going forward. With a guaranteed source of income, there is minimal risk of defaulting making it a win-win situation for both parties.
Unexpected Unemployment
Unemployment falls as one of the greatest life-changing experiences. It brings with its hopelessness and a sense of insecurity. A title loan will go a long way in keeping your head above water while you look for new employment or venture into self-employment. A title loan will help with ensuring you have a roof over your head as you continue with your employment search.
Moving Expenses
Let’s face it. Moving can be expensive, with previously unthought of costs around every corner. Mover’s fees, new home insurance, and down-payments are among the things that may need ready liquidity. A title loan is a great way to ease off the pressure of moving to a new home. With its speedy application process and fast payout, moving can become a seamless process for you.
Immediate Auto Repairs
Cars, just like humans, get faulty at times. What better way to fund repairs than to use the actual car as collateral? Title loans go a long way in ensuring that the very thing that gets you to work every day remains functional. Whether you need new tires, a fuel pump or a/c repair, a title loan can provide you with the quick cash to give the repair man the go-ahead with the repairs.
What to Look for In A Title Loan provider?
Reliable
The terms and conditions should be clear with no hidden clauses. Borrowers should have a clear understanding of the process, the interest fees, as well as terms of re-possession. Don’t be afraid to take as much time as you may need before signing the papers. Do your homework and verify that the company you choose has great reviews from clients who have used the services and are repeat clients. Look for a loan company that will allow ample time for clients to pay back the loan with no threats or relentless phone calls.
Time
A title loan staff should allow clients to make informed decisions while keeping everything upfront. You can search for companies in the online lending database as well as the DMV. Further, should an emergency come up, ask about the ability to extend your due date and the process for doing so.
Online Application for those who need a loan in a hurry, the last thing on your mind is answering questions back and forth. An online application should be simple to complete and submit. Title companies should start the processing of the loan as soon as they receive the application papers. Disbursement is typically done in less than 24 hours and generous repayment plans are explained.
Title loans are effective and quick ways to deal with emergencies. If you are comfortable with the interest rates, you should consider title loans. Financial experts, however, do not recommend taking title loans to purchase items or support a luxurious lifestyle. When used correctly, title loans can and will make difficult life situations easier to maneuver.
