Posted on: 3 June 2016
A title loan is a type of loan that will provide you with money in exchange for your vehicle's title as collateral. If you do not pay back the loan, then the title loan service is able to seize the vehicle. Listed below are three reasons to utilize a title loan.
Easy To Qualify
One of the biggest reasons to utilize a title loan is if you need access to extra money but do not have a good credit history. In that situation, you could find that all of your local banks and credit unions are unwilling to extend credit to you or approve your loan.
However, a title loan service will not have that problem as they will not typically look at your credit report or history. In most cases, the service only needs proof of income, a bank account to deposit money to and automatically withdraw money from on the repayment date, and the title of your vehicle to approve you for a loan.
Another reason to utilize a title loan is that it can help you get money very quickly. Once you complete the paperwork and hand over the title, you will receive your money. There is no need for you to wait for an extensive processing period.
This is ideal if you run into an emergency situation and need money as soon as possible. With a bank loan, it can often take several days to receive your money due to the lengthy application and review process, but that doesn't really help if your vehicle needs emergency repairs or you need to make an immediate rent payment to avoid eviction.
Flexible Payment Options
Finally, a title loan company can provide you with flexible payment options in the event that you find yourself unable to pay off the loan in the agreed-upon time frame. Instead of losing your vehicle, you can speak to a title loan service about refinancing the loan so that you can pay at a later date.
If the loan is refinanced, you will typically need to pay a fee for the refinancing, but this is a better option than losing your vehicle. While refinancing is a good option as it can help you arrange the loan repayment terms around your paychecks, you will want to avoid refinancing too often as the fees and interest can really add up over time.
Contact a title loan service, such as Nekoosa Cash Advance LLC, today in order to discuss how they may be able to assist you with getting the funds that you may need. A title loan is a good option if you are having a hard time qualifying for a loan, need money quickly, or simply need access to flexible payment options.Share