Car title loans refer to loans that are provided to you after you have surrendered your car title as the security for the loan. They are usually short-term loan facilities which in most cases attract high interest rates compared to other loan types or options. Car title loans however has many benefits; look below for some examples of these:
1. They are quick: Car title loans take very little time to be processed compared to other loans. For instance, typical car title loans can take a maximum of 24 hours to be approved which gives borrowers the much needed financial assistance to address urgent financial concerns.
2. They do not require credit reports or ratings: Title car loans are also beneficial because they do not require one to produce their credit report or credit scores in order to qualify for a loan. The only requirement is a car title which is enough to secure a car title loan in hours. Lenders do not need to check financial information such as; your sources of income, your past loan history e.t.c. which ensures that even those individuals with credit problems get the much needed financial assistance.
3. They are available to individuals with cash flow problems: The fact that these loans do not require credit reports/scores means that they are available to individuals who have financial problems i.e. cash flow problems. This makes the loans very helpful to many people who have cash flow problems yet they encounter many challenges in terms of securing loans.
4. They are flexible: Another key feature of title car loans that is beneficial is flexibility. Title car loans are very flexible loans because the amounts available for borrowing range from as low as $150 to as high as $5000. It is also possible to leverage these loans as much as you want provided you are within the allowed limits according to lenders. The interest rates charged are also more flexible compared to other loans. It is however important to note that the flexibility of interest rates varies according many factors i.e. the duration of payment, the amount borrowed, the terms of payment that were agreed on, regulations among other things.
5. Favorable repayment provisions: Title car loans also have numerous repayment provisions that are suitable for borrowers facing financial problems. For instance, in case a borrower is unable to meet all repayment loan requirements i.e. pay regular monthly interest rates or loan repayments, there are special provisions that can enable the borrower to roll over the remaining amount to get another car title loan. With the new loan, the borrower can use the amount to offset his/her balance to give way for a fresh agreement.
Car title loans are great and convenient loan facilities. They should however be taken wisely to be able to benefit fully from them. It is also important to make sure that you compare different car title loan offers from different lenders to ensure that you get the best deal possible.