What Are the Pros and Cons of Car Title Loans?
May 04, 2018
Like any kind of loan, there are a few cons to getting a car title loan. The good news is, the pros outweigh the cons. This is easily overcome by making sure you have a plan in place for repaying the loan on time. Another con to most car title loans is that the interest rate may be a little higher than other types of loans, but if you need money in an emergency, paying a higher interest rate to get the money quickly is not a deal breaker. The good news about car title loans from Quick Cash Auto Loans is that you can get interest rates as low as 1.5% with the amount divided into bi-weekly installments.
Car title loans have a lot of pros, such as:
- Hassle-free service
- Short wait times
- No credit check required
- Ability to drive car
- Fixed interest rate
As you can see, there are some specific pros to getting a car title loan when you need money in a financial crisis. The biggest pro to car title loans is that you can get one with no hassle. Car title loan companies don't require you to jump through hoops. You don't need to supply a lot of paperwork to obtain a car title loan. If you own your car and have a clear title, there really isn't a lot of criteria necessary to get the money you need fast.
Car title loan companies won't hassle you with questions. Most banks require you to disclose why you're in need of a loan. This isn't the case with car title loans. The reason you need the money is your personal business. In most cases, car title loan agencies won't even ask why you need a loan. If you have a clear car title, a job, and a solid residence, you will qualify for a car title loan.
Car title loans are easy to get, even if you have a not-so-good credit history. That's because most car title loan companies don't check your credit history. They also don't report to credit agencies, so even if you're late on a payment, it won't be a mark against you. This is a definite plus for car title loans. With banks, just a couple of late payments can damage your credit score.
Something else to remember is that too many credit checks can bring down your credit score. Since there are no credit checks involved with car title loans, you don't run the risk of doing damage to your credit score by having it checked.
Although your car is collateral for the loan, you get to drive it while you're using the money you get from the car title loan. This is a big plus. It means you can still use your car to get back and forth to work and to do everything else you need your car for. When you get a car title loan, you leave your car title with the loan company, not the car itself. This means you can have the peace of mind of having your financial stress alleviated without disrupting your lifestyle.
Flexibility is another positive part of car title loans. Not only are car title loans easy to get, you can often work with a car title loan company to set a convenient schedule for paying off your loan. Reputable car title loan companies have specialized loan officers who can answer all of your questions about car title loans before you take one out. This lets you know up front what kind of schedule you'll be on and how the re-payment process works.
Another plus for car title loans is that you get a fixed interest rate. Many bank loans are done with a variable interest rate, meaning the interest you pay will fluctuate with the market, making it difficult to figure out what you're paying. With car title loans, you get a fixed rate. The interest rate quoted to you when you take out a car title loan is the rate you pay from start to finish.
What Are My Other Loan Options?
You might be in a situation where you can borrow money from a family member. Borrowing from family members can often turn out to be a mistake. Owing money to someone close to you can lead to a strain in the relationship. Many people find it best to avoid borrowing from friends or members of their family. In some cases, even if you feel comfortable borrowing from a friend or family member, you may not have anyone close to you who is able to loan you money.
Another option for fast cash is a payday loan. A payday loan company lets you write a check for the amount of the loan you'd like to receive. The check is held until the end of the loan term (usually your next payday), hence the name of the loan type. Interest rates for payday loans can be pretty high, though, and are often hard to pay back. Many consumers will take out payday loans to pay off payday loans, which is why they have been restricted in some states.
Car title loans differ from payday loans because you use your car as collateral rather than write a check. Car title loan companies typically have lower interest rates than those at a payday loan company. The way a car title loan works is simple. If you have a title to your car that's clear (meaning you own your car), you use your car as collateral and obtain a loan based on the equity in your car. This is a convenient and fast way to get the money you need in an emergency situation.
Quick Cash Auto Loans is a consumer finance company licensed in Florida under statute 516. Our goal is to serve you and your financial needs by helping you get the cash you need when you need it. The process of getting a car title loan through couldn't be simpler. We don't require you to explain why you need the money. All you do is fill out the form on our website and we'll contact you to set up a convenient appointment in our office. Our loan specialists are qualified and eager to help you get the money you need to solve your financial emergency. We will assess your needs and issue a loan in most cases on the same day, no waiting involved. There are some situations that could delay the loan for a day, but typically this is not the case. There's no need for a lot of paperwork or credit history check. Your loan amount will be based on the equity in your vehicle, your employment status, and your residence history. It couldn't be easier. Our goal is always to help you achieve the worry-free loan you need to help put your finances back in order.
Stop stressing out about your financial needs. Car title loans are easy to secure through Quick Cash Auto Loans, so get started today by giving us a call at (786) 600-3411
or filling out the form
on this page.
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