How Do Title Loans Work?
April 04, 2018
It is undeniable that most Americans struggle with debts nowadays. This situation leads to financial stress, which can cause physical symptoms of illness in the worst cases. Even though some people cope better with stress than others, we all have to agree that dealing with debt can be unbelievably uncomfortable and hard to handle. In an attempt to mitigate the stress, a great number of people look for fast solutions to get rid of their debts; being title loans a popular option.Some studies show how Americans' debts have significantly increased in recent years. As a consequence, frustration and stress have spread throughout the United States population as Americans face the fact that they don't have the money to pay their debtors. Why are people struggling with debt? Here are the top reasons!
- Incorrect use of credit cards: Credit cards have become essential in today's economy for two main reasons. First, they allow you to pay everyday expenses, and second, they can help you build your credit score if used wisely. Credit cards can, however, affect your economy when misused. For example, charging more to it than you can afford is a clear sign that you're incorrectly using your credit card. Keep in mind that credit card debt generates interest that accumulates and increases your debt.
- You cannot say no to unnecessary expenses: Spending all your income to cover your needs is one thing, but biting off more than you can chew is another. Being level-headed is very important. Always max out your income and save anything remaining to pay your existing bills. Stay away from unnecessary purchases.
- Income is lower than expenses: If you already have more debt than the money you earn, it is time to increase your income. Look for alternative options to earn extra money so you can pay your pending bills and catch up with your finances again.
- No emergency budget: Unexpected expenses can occur at the least expected times. As unpredictable as they can be, you can take preventive measures to minimize the impact on your finances. Having funds available to solve emergencies can ease your stress when such situations happen.
- Financial illiteracy: Learning money management skills is crucial to a stable economy. Unfortunately, a large number of people remain financially illiterate in the US, which may dramatically affect their personal economy in the long run. Learn at least the basics of money management so you can have more control of your financial situation.
Credit cards, for example, are a common option for many people. Just consider that you need to have an excellent credit score to get one of these bad boys. Like most loans, credit cards accumulate interest that raises your balance. Also, keep in mind that skipping installment payments could not only increase your debt but can also affect your credit score. Another possibility is a bank loan, but this can be a long process. You can also turn to payday loans; the only problem with a payday loan is giving up on your next salary payment. These loans require paying the whole amount in a single payment based on your salary.
On the other hand, title loans are gaining popularity among Americans seeking fast financial solutions. These types of loans have certain characteristics that can make them more attractive than others. How do title loans work? Let's take a look at some of these characteristics to better understand them.
- What are title loans? The first step in understanding how these loans work is to learn what they are. Title loans — also known as auto title loans or car title loans — are fast financial solutions that offer customers extra money based on the value of their vehicle. Some title loan agencies like Quick Cash Auto Loans offer up to $25,000, but this depends exclusively on the equity in the customer's car. It is important to mention that our customers' debt is divided into installments to be paid within twelve months along, including the interest rate.
- Easy loan application process Submitting your application should be easy and simple. Just dial our phone number and one of our agents will guide you through the whole procedure. You can also visit our website and fill out a form. It shouldn't take more than an internet connection, a device, and 5 minutes of your time. At Quick Cash Auto Loans, you don't even have to worry about the device you use. You can access our website whether you have a desktop computer, a laptop, a tablet, or a smartphone. Enter our website, fill out the form with some basic information about you and your car, then click submit.
- Low risk of loan refusal One of the most attractive features of title loans is the low risk of refusal. This is because most car title loan companies base their loans on the value of the car and don't follow the same criteria as other financial institutions when reviewing customers' applications. In the case of Quick Cash Auto Loans, everybody is a potential client as long as they have a car and its title is clear.
- Bad credit or No credit There is nothing more difficult and terrifying than reaching and maintaining a decent credit score. Good news is, at Quick Cash Auto Loans, you don't even need to have one to become eligible for our loans. Good credit, bad credit, or no credit? No problem!
- Fast loan process Obtaining a title loan is significantly faster than obtaining any other type of loan. This industry has evolved to guarantee a better customer experience. With this in mind, Quick Cash Auto Loans has designed a fast and simple loan process to give clients the help they need in the shortest amount of time possible – everything flows quickly from the very moment customers submit their application until the moment they get the money they requested.
- Keep driving your car The best part of getting one of our loans is that you can continue using your car as you always have, while paying off the loan.
After you've completed the loan application, one of our agents will be available to answer any question you might have.
The second step corresponds to the evaluation of the car. We will require you to take your vehicle and its title to our office. This visit will have a double purpose: First, to assess the car, and second, to submit some easily accessible documents to confirm your personal information and your working status.
The third and last step of the process consists of setting the amount of the loan and handing it out to you. That's it. You're ready to go!
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