Are you someone who is cash-strapped and you still have a number of expenses that you have to meet till the end of the month? If answered yes, you can offer your car as collateral for obtaining a short term loan which is called a car title loan. In case you agree to take out such a loan, the lender will place a lien on the title of your car and through this you allow him to repossess your car in case you fail to make timely payments. The loan that you get by offering your car as collateral can be used for various purposes like paying off your debts, opting for a home renovation, repaying your student loan installments and making ends meet.
In everybody’s life, there arises a time when you might require fast cash. Some unexpected bill might have come up out of nowhere and you may not have immediate funds to make ends meet. Take a look at the points mentioned below to know more on car title loans and how they can benefit you.
- Easy process of obtaining quick cash
Perhaps one of the biggest benefits of taking out car title loans is that they’re pretty prompt and convenient. The process is pretty easy and effortless and it can be completed within a time period of 10 minutes. You just have to submit a form and only then you can obtain the cash within the same day.
- Credit is not a big factor for lenders
Car title loans are also given the name of no credit check loans as they’re based on the collateral which is your car. This makes it easier for you to secure such a loan even though you may not have a good credit score. Most of the lenders will just take into account the worth of your car and also take a glance at your monthly income before lending a car title loan.
- You can qualify for such a loan when you have a car
Irrespective of whether you have a motorcycle, car, RV, truck or SUV, you can still qualify for a car title loan. Such loans aren’t based on your credit score as mentioned earlier. It is just based on the title of the vehicle and hence only when you have a vehicle of your own and you have a steady income, you can be certain about receiving the proceeds of the loan.
- You can continue using your car
If you obtain a car title loan, the best part is that you can continue driving the car. The car title is used as collateral in case the borrower can’t pay back the loan and still once you make final payments, the title is returned to you. So, you don’t require worrying about getting around while you take out a car title loan.
Therefore, if you’re someone who is hunting for cash to meet your mid-month financial contingencies, make sure you get a car title loan from a lender who can offer you the best terms.