Title loans are fast, easy ways to get the money you need by using the title of your car as collateral and forgetting about credit scores and waiting periods altogether. The loans are dependent on how much you need, your vehicle’s value, and your ability to pay the loan within a certain time frame. If you find yourself in a situation that might call for a title loan, it’s good to know more about them and how they work.
What Is A Title Loan?
If your vehicle is paid off and you have its title, you can get a title loan. You get to borrow money and still drive your car while you pay back the money you owe. Your car is collateral, but it remains in your possession while you pay the money back. Title loans don’t require a credit check, so they are good for those who don’t have great credit. They also get you the money quickly, so they work well if you are in a time crunch.
Interest Rate Worries
Many people who need a loan for one reason or another are going to be worried about interest rates. Payday loans, for example, are known for having high interest rates. But title loans are much easier in that area because they have much lower rates and allow you to pay less on the loan overall. Since you are using your car’s title as collateral, the business has a guarantee and is then able to offer you a lower interest rate. It’s a good way to keep your loan costs down as far as possible.
Same Day Cash Service
There aren’t that many loans on the market that allow you to come in, fill out paperwork, and walk away with the cash. If you were to go to your bank, there would be credit checks, waiting periods, and piles of paperwork to get through before you would get the money you needed. Title loans make it all much faster. You just have to fill out a few little things and have the company look at your car to assess its worth and then you’re on your way with the money you need in your hand. This type of loan works well for unexpected expenses or emergency situations. You can’t always see life coming and if you have medical bills that need to be paid or a home that needs repairs, title loans can help you cover the expenses right away.
Forget Money Stresses With Title Loans
Being short on cash or having financial difficulties can be a huge stress for anyone. Getting the cash you need with a title loan right away can help you get back on your feet and pay for things that you need. If you are thinking about a title loan for any reason at all, let the experts at Champion Financial Services assess your situation and advise you as to the best course of action for your individual needs.