Why an Auto Title Loan is Right For You
January 12, 2018
We've all experienced financial difficulties at some point. You have a bill due, but your paycheck isn't coming for a few days. Or you have an emergency, but you don't have the money to take care of it. When unexpected expenses fall into your lap, you may not know where to turn to. Fortunately, there are alternatives to keep your head above water. If you don't have an emergency savings account, your assets can save the day! Have you thought about using your car to get money? That's right! Auto Title Loans can be really helpful in these kinds of situations.Of course, you may be thinking: A loan? That takes too long, and the process to get one is very complicated most of the time. True! A great number of title loan agencies force customers to undergo intricate procedures to get their loan approved. However, you would be surprised to find out how simple and quick the application process for an auto title loan can be if you look for the right auto title loan company. So, it is just a matter of making a wise decision when choosing the company. You may find that auto title loans can be very convenient.
What Are Auto Title Loans?
According to TheLawDictionary.org, a car tile loan "is a loan where the borrower provides their car title as collateral for a loan." It means that you no longer have to put your home or any other property you own at risk.
How Do Auto Title Loans Work? You need to use your car to get to and from work. Maybe you're scared that you'll lose your car if you sign up for an auto title loan. Well, let us put your mind at ease. There are two kinds of auto title loan companies: Ones that retain your car and its title and give them back to you when you finish paying, and ones that are much more convenient for you! Some auto title loan companies like Quick Cash Auto Loans put a lien on your car's title while you pay back the loan. The good news is that you get to use your car just like you did before you asked for the money.
When Are Auto Title Loans Convenient?
Auto title loans can come in handy at any time, especially when unexpected needs arise. However, most auto title loan companies won't ask about your financial situation. Therefore, you can spend your loan on anything you want. Whether you want to pay for a vacation, a bill, or achieve a new goal, auto title loans are a fast and simple way to get the extra money you are looking for.
Why Are Auto Title Loans Convenient for You?
There are plenty of reasons to choose an auto title loan over other types of loans.
- Credit Score: Maybe you've tried to get a loan, and you've already been turned down. That may have had something to do with your credit score. According to the Consumer Financial Protection Bureau, "a credit score predicts how likely you are to pay back a loan on time." Some other factors are considered when calculating a person's credit score, such as, bill-paying history, current unpaid debt, number and type of loan accounts, available credit used, credit applications, and evidence of foreclosure or bankruptcy.
Since auto title loans are backed by your car's title, your credit history is not taken into consideration when it comes to approving them. As long as you have a clean title, you may be eligible for an auto title loan.
- Proof of Income: You have money coming in, but you can't prove it. Maybe you're a freelancer, and you can't provide proof to a lender that you have regular paychecks. Or maybe you just lost or quit your job, and you're about to start a new one in a few weeks. With an auto title loan, you don't need to provide proof of income to qualify.
- No More Mortgages: Buying a house is the biggest investment that most people make in their lives. Most homeowners request endless mortgages to be able to own their property. An unpaid mortgage could result in foreclosure. In the third quarter of 2017, "roughly 42% of American families" were paying off a mortgage, according to the Washington Post. On top of that, many people ask for reverse mortgages on their homes to help pay any home improvement needed. Auto title loans take that stress off your shoulders. Why put your home at risk if you can use your car as collateral to get that extra money you need? As long as you have a car for personal use, you are very likely to qualify for a car title loan.
- Fast and Timely Help: Picture this: Your washing machine breaks down, and you can't wait weeks for it to get fixed. Or maybe all the bills lined up at once—rent, car insurance, electricity, etc.—and you can't handle the load all at once, but you still need all those services. You can definitely use an auto title loan. There are many reasons why you might need money right now, but it takes too long for your loan application at banking institutions to even get reviewed. Auto title loans can put money in your pocket the same day you submit your application.
Trust and honesty are essential parts of any financial agreement. Before you sign up for an auto title loan, be sure to read the fine print. Some auto title loan companies have very strict standards, such as repossessing your car if you are just a day late on your payment. Go with a reputable company that allows you to use your car while you pay back the loan, and has flexible terms just in case something comes up and you are a little late on your monthly payments.
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