by Susan Paige
Whether you have a medical emergency, need to pay school fees or finance your business, or want to help out a friend, an auto title loan is your instant cash solution. Car title loans enable you to access quick cash with your vehicle as collateral. Read on for five benefits of auto title loans.
1. Instant cash
Getting a traditional loan involves a lengthy process. You have to fill out the application form and wait for the lender to check your credit report and credit score with the CIBIL to determine your creditworthiness, which is time-consuming. This is not the case with a car title loan.
Once you apply for an auto title loan and provide the car ownership documents, the lender inspects the vehicle to ascertain that it is worth the amount you intend to borrow. They then approve the loan, and you receive the loan money the same day! This makes vehicle or motorcycle title loans perfect for individuals in dire need of money.
2. No credit check
Do you need fast cash but lack good credit to apply for a traditional bank loan? Consider taking out an auto title loan. Car or motorcycle title loans are perfect financial solutions for borrowers with a bad credit score. Unlike an unsecured bank loan, where the lender provides financial aid with the assumption that the borrower will pay the principal and the interest, a title loan is a secured loan since it is based on collateral: your car. There is no risk for the lending company when giving out a car auto loan since they secure your vehicle, so they do not perform background or credit checks.
3. You continue using your car
You do not have to worry about the lending company confiscating or withholding your vehicle with an auto title loan. You are only obliged to give a pair of your car keys and title to the lending company and continue using the car as usual as you pay the loan. Only when you fail to pay the loan as agreed can the lending company repossess the vehicle and sell it to recover their money.
4. Cheaper than cash advance
A motorcycle title loan is less expensive than a cash advance. This is because the lending company secures your car as collateral, minimizing the risk. If you default payment, the lender can repossess the vehicle to recover their money. A cash advance is more expensive since the lenders use the high-interest rates as protection.
5. Flexible loan payment terms and options
Auto title loan lenders offer flexible payment options. If you borrow a small amount, you could opt to pay it back within a month or earlier. Auto title loan lenders do not charge prepayment penalties. Most motorcycle title loan lenders provide you with multiple installment payment terms when you request a vast amount, allowing you to pay the loan without any inconvenience.
If you are looking for financial help and want to avoid the lengthy process of getting a traditional loan, you should consider applying for a car title loan. Auto title loans do not require credit checks, are cheaper than a cash advance, and allow flexible loan payment options.