A car title loan is a secured loan that uses your car as collateral. The amount of money you can borrow is based on the value of your car, and you typically have to repay the loan within 30 days. Car title loans are a convenient way to get cash quickly for financial emergencies such as car repairs, medical bills, or unexpected expenses. Here are four benefits of getting a car title loan:
1. Easy Application Process
One of the best benefits of car title loans is the easy application process. All you need to do is fill out a short online form or call the car title loan lenders near you, and their team will take care of the rest. You’re be required to provide:
- Your vehicle’s make, model, and year
- Your vehicle’s mileage
- Your contact information
- Your vehicle’ title
- Your driver’s license number
5 Star Car Title Loans also notes that you’ll also need to have a lien-free car title in your name. With the right information, the lender will appraise your vehicle to determine how much money you can borrow. The entire process usually takes less than 30 minutes before you’re approved for a loan. The good thing is that you get to drive your car while making the loan payments.
2. Quick Approval and Funding Process
Car title loans often have a quick approval and funding process, unlike traditional loans that can take weeks or even months to be approved. This is because car title loans are secured by the value of your vehicle, so the approval process is much faster. This means you can get approved for a loan and get the money you need within 24 hours, sometimes even within just a few hours.
This makes car title loans a preferred option for getting quick funding for financial emergencies. Car title loans can be a lifesaver when you have no other option and need money fast. However, to avoid relying on these quick but high-interest rate funding options, it’s a good idea to start building an emergency fund.
3. A Good Credit Score is Not Needed
You don’t need to have a good credit score in order to qualify for a car title loan. This is because the loan is secured by your vehicle, so the lender has less risk. That means you can still get the money you need even if you have bad credit. This makes it easier for people to get the money they need when they need it without having to worry about their credit score.
Additionally, if you make your car title loan payments on time, this will show up on your credit report and improve your credit score over time. This can be a great way to improve your credit if you have bad credit or no credit history.
4. You Have Access to Larger Loan Amounts
Since car title loans are secured by your vehicle, you have access to larger loan amounts than with unsecured loans. You can borrow as much as 25 to 50% of the total value of your car, and in some cases, even more. This means that if you need a large amount of money quickly, a car title loan may be the best option for you.
The newer the car or, the more expensive the car, the more money you can borrow against it. However, even if you have an older or less expensive car, you may still be able to borrow a significant amount of money. Either way, the amount you can borrow with a car title loan is much more than what you could get with a payday loan or cash advance.
Get The Money You Need for Emergencies
Car title loans are a great way to get the money you need in a pinch. If you own your car outright and have the lien-free title, you could qualify for a loan of up to $10,000 or even more – without needing a credit check. Whether you need money for necessary home repairs, medical bills, or any other financial emergency, a car title loan could be the perfect solution.