If you need money quickly to cover an emergency situation, you may not be sure where to turn. The bank would likely turn you down and even if they didn’t, it would take time to get the cash in your hand and you need it faster than that. There are certain people who benefit from auto title loans, including these four. If you find yourself on this list, consider an auto title loan the next time you’re in a jam.
#1: People With Less Than Stellar Credit
If you want a loan from the bank, they will check your credit score. If you have bad credit or even a lower than perfect score, you won’t be considered for a unsecured loan. Some banks will make exceptions if you’ve done business with them for a long time, but don’t count on getting any type of loan—especially something fast. On the other hand, if you go with an auto title loan, you don’t have to have a credit check at all. Your vehicle is your collateral so despite your credit score, you get the cash you need.
#2: People Who Only Need Money Short-Term
You’re not going to use an auto title loan to buy a home, but if you just need money to get you by until your next paycheck or to cover an unexpected expense short-term, it might be a good option. Your financial situation could change at any minute and if you know this sticky situation is only going to last a short amount of time, an auto title loan can help you out until things improve.
#3: People Who Need Money Fast
You never know what life is going to hit you with and if you need to pay a bill right away before you get the medication you need or if you have to purchase something for a home repair, you don’t have time to wait around for the money. Auto title loans can give you the cash you need fast, so you can get what you need and move on with your life.
#4: People Who Don’t Want Killer Interest Rates
You don’t want to have to pay any more for the loan than you have to, and you can save hundreds of dollars if you get a good interest rate. If money is already tight, that’s a big deal. Payday loans are an option for those who don’t have good credit, but you can generally get a lower interest rate with an auto title loan. In these cases, you have collateral in your car and can usually get lower interest because of it. There’s no reason to pay more on your loan through high interest rates when you can get the money you need for less.
Moving Forward With Auto Title Loans
If you’re interested in auto title loans, or you want to look into details to see if it’s really the right recourse for you, talk to the professionals at Champion Financial Services for honest, professional advice.