What is Title Loan?
Title Loans are short-term loans with high interest that need your car as an ancillary to borrow money. Generally, if you apply for a loan, lenders check your credit history before approving your loan application. If your credit scores are poor and you need a loan, you may search for places that will grant you a loan even without a good credit score. Title loan lenders do not check your past financial activities, but you may face a few other problems.
Title loans are a kind of loan that enables you to use the title of your vehicle as an ancillary. To get a title loan, you will have to hand over your vehicle to the lender and get it back after repaying the lender.
Like many players online, title loans offered by FastTitleLoans allow borrowers to use their cars or other vehicles as an ancillary. Since your vehicle is responsible for procuring your loan repayment, the lender can take complete control of your vehicle if you fail to repay the loan timely. Title Loans give high interest in return but have a handful of requirements which means that even if your credit score is less than the required score, title loan lenders will approve your loan application. There are times when a few lenders do not consider checking credit scores.
How Does Title Loan Work?
You can submit your application for a title loan via a broker like FastTitleLoans if your vehicle is in a good condition and possess a vehicle title for free. While submitting your application, you have to show your vehicle, ownership proof, vehicle title, and license to the lender.
Once the broker from FastTitleLoans sanctions your application for a Title Loan, you will give your vehicle title to the lender in exchange for the money the lender will lend you. When the
lender regulates the loan terms, Title Loans have tenures of approximately 30 days and resemble payday loans which further means that after your loan tenure ends, you will have to make a one-time payment to repay the loan to the lender. You need to make payments on the borrowed amount, in addition to interest and fees. Many lenders offering Title Loans charge a fee of approximately 25 percent of the loan amount monthly that later converts into a yearly percentage rate of approximately 300 percent. Click here to see where the nearest title loan is.
Therefore, title loans can sometimes become a burden and full of hassles. If you fail to repay the amount you borrowed to the lender timely, you can lose the title of your vehicle because your vehicle serves as the ancillary. Thus, if you opt for a title loan, you should repay the amount you borrowed to the lender and ensure that you do not lose the title of your vehicle.
Pros of Title Loan
Some advantages of Title Loans are:
- No Checking of Earlier Credit Activities:Title loan lenders do not check credit history. Title loans are a good option for people with a low credit score. Title loans are good for individuals who require cash but do not have other options available to them and do not have good credit scores to be eligible for conventional loans from banks and other financial establishments.
- Quick and easy access to funds: FastTitleLoans are known for their quick application and approval process, which can provide borrowers with funds in as little as 24 hours.
- Convenient and Accessible: Title loan companies like FastTitleLoans often have multiple locations and an online application process, making it easy for borrowers to apply and receive funds.
- Less impact on your credit score: Yes, that’s correct. Because title loans do not require a credit check, they have no impact on your credit score.
How to Get a Title Loan with Your Vehicles?
To get a Title Loan with your vehicle, you can apply for the process online but you have to be physically present to show your vehicle to the lender. While applying for a vehicle title loan, proof of ownership, vehicle insurance, a clear title, and photo identification. The lender might also ask for a set of vehicle keys.
You must own your vehicle or have equity in your vehicle. If you cannot repay a title loan, you can lose your vehicle.
When we talk about getting a title loan, we need a hassle free procedure so that we get the loan as soon as possible. Many title loan providers like FastTitleLoans allows you to get the loan in just 3 steps –
- Provide basic information – You can get connected to any lender after filling up an uncomplicated form. You just have to enter and submit your basic details to connect with any lender offering title loans.
- Know the value of the vehicle – Once lenders offering title loans receive the information they want about the borrower, they will examine your vehicle thoroughly when you take the vehicle to the location lenders want to evaluate. According to market data and standards, title loan lenders will swiftly and accurately value your vehicle. After examining the condition of the vehicle, lenders will decide how much they will give to the borrower.
- Make decision and get your money fast – After the title loan finds that the vehicle is in working condition and the documents that the borrower had submitted are appropriate, the lender will sanction the loan application. If both the borrower and the title loan lender agreed, the borrower will receive the amount directly into their bank account within a few working days.
What Can Title Loans Be Used for?
You can use Title Loans to borrow money against your vehicle value with the help of brokers like FastTitleLoans. The title of your vehicle secures the title loan which means that if you fail to repay the loan to the lender offering title loans, the title loan lender can take control of your vehicle.
Title Loans provide effortless access to cash. People who require cash urgently but do not have a good credit score can use title loans for their benefit. People facing financial crunch use title loans to fulfill their needs.
You can use title loans to avail the following benefits:
- You can get easy and immediate access to cash.
- Title Loans do not have a lengthy process.
- You just need your vehicle ownership documents.
- If you opt for a title loan, the title loan lender does not confiscate your vehicle and only uses the vehicle as an assurance and you can use your vehicle with complete authority.
- Title loans do not require any guarantor or a good credit score. Your vehicle proves to be a good entitlement for the title loan that you opt for.
It is relatively effortless to get a Title Loan because title loan lenders do not consider checking credit scores. For people with low credit scores and facing problems with securing money, title loans are a blessing in disguise. You have to ensure to return the borrowed amount to the title loan lender and do not lose the title of your vehicle. Ensure to contemplate the different alternatives and calculate the sum that you will have to return to the lender. Lastly, think of a way how you will return the amount you borrowed to the title loan lender when the loan tenure ends and before signing on any document. Before applying for title loans, considering other loan options is advisable.