People have different opinions and arguments about loans. Car title loans are also part of this discussion. Are Car Title Loans a Bad Idea? Some people think they are not the best option for consumers. Is this true? I’ll give a straight answer here – no, they are not.
Credit issues have created very high borrowing barriers for a lot of people. Many people can’t get loans from banks due to their bad credit background. It is here that title loans become relevant: they come to the rescue of these people by letting them borrow money even when they have bad credit. We, for example, make the borrowing process simple. You won’t have to go through the complicated procedure, nor will you need to have perfect credit. We will help you even if you have bad credit. In fact, most of the clients that we help do have bad credit.
Let’s clear the air on some of these notions of car title loans.
Some argue that the interest rates are too high. Banks usually offer much lower interest rates than title loan lenders. But come to think of it: the bank provides lower interest rates, and that makes it the more attractive offer. So you get to the bank, and you are asked to fill out tons of paperwork and provide your credit papers. This is the first roadblock – your credit background is a bright, frightening read. Then you find out that after submitting the documents needed, you would have to wait days or weeks to hear their decision on your application. How does this situation – the lower interest rates – help you? You need the cash fast to clear an important bill. At this point, wouldn’t it be better to go for the car title loan since it’s the option that would solve your needs?
While the back can take weeks to get you approved, we will get you approved in minutes. We do require some paperwork but we only require the most important documents, so we can get you approved immediately.
After we have booked your car with the Kelley Blue Book and told you how much money your car will qualify for, we need to get you qualified too. We will do a credit check, even if your credit is bad, do not worry. We will still get you funded. We have to verify your income. So if you can provide your bank statements or any other proof of income. This step is the most important step in getting your car to qualify. We want to make sure that repayment of your title loan is not a problem.
You will have to provide your proof of residence and a utility bill should be fine. Depending on the loan amount, we will need to have insurance on the car and we will need to be the loss payee on the policy.
This will protect you and us. Should something happen to the car, the insurance will pay us off and you will not be financially responsible for paying the balance of the equity loan on your title.
We will need five personal references. We will run a DMV report to see if there are any more fees on the car and make sure that we can add our name to the title for our security interest. Photos of the condition of the car will be needed as well as a photo of the odometer reading. We want to verify the condition of the car and check on the actual miles on the car.
Another fear is that the tendency for the borrower to lose their car is high. This concern is well-informed, but this happened in just a few cases. Only 4 to 8 percent of borrowers had this unfortunate fate.
Again, if you’re thinking of getting a home equity loan instead of a car title loan, you stand the risk of losing your house. It would be a worse situation if you lost your house than your car.
If you are getting a loan that you simply cannot afford to pay then no matter what the interest rate is, it is going to be a bad loan for you.
People tend to think that car title loans are dangerous: it seems to trap its borrowers on a slimy slope so that the more they try to get out of debt, the more they fall deeper. They hardly come out of debt.
To avoid this, it will be wise to take only what you need and what you can comfortably pay back. For instance, if you need $3,200 be sure that you have a regular income of at least $4,000. This way, you will be able to pay back no matter what happens.
This kind of unending debt can happen even with traditional bank loans. It is not exclusive to car title loans. Check your income, find out how much you need and then apply. No one else will be able to do that for you. All of our car title loans have our no prepayment penalty option on them. So you can pay off the loan at any time.
If there comes a point where you can no longer make your title loan payments, then you can always try and sell your car. You could sell it on Craigslist or Auto Trader. You could even just trade in your car for another car or you could have a company like CarMax buy your car. We give you the flexibility to get out of your title loan at any moment.
What They Ignore
Most people who criticize car title loans forget that it has considerable benefits. When you need quick cash for an urgent bill, car title loans help you fix it. Banks, unfortunately, won’t help you here. But because car title loans are processed and paid the same day, you can always count on them in such critical situations.
The people who criticize title loans are obviously not the people who need them. They do not understand what it is like if there are no banks that will lend you any money. They do not understand that when you have an emergency, you need to get it taken care of as soon as possible.
The underbanked are people who do not use the traditional banks and have poor credit. They are typically the people who use payday loans, check cashing services and car title loans. Having the ability to use any of these services is a huge advantage to them.
Having credit problems is no barrier to getting car title loans. This mainly is a good advantage since banks won’t even listen to you with your bad credit. With an auto title loan, you are able to get at least a minimum loan of $2,500 and up, regardless of your credit.
When you have a need for some extra money and you need it fast, a loan on your pink slip can really be a lifesaver. Emergencies happen and when they do, you need to be able to use the equity that you have in your car to get the money that you need.
There are no perfect borrowing options. This includes car title loans. That banks don’t work with people with credit issues does not mean their borrowing chances are dead. The alternative here is car title loans – and you should strongly consider it.
With getting an auto title loan, you will be paying higher interest than a traditional bank but you will be getting the money you need today. Getting a fast pink slip loan with no prepayment penalties can be a great option for you.
As we are not approving you on your credit but the equity that you have in your vehicle, we are able to approve more people than the other lenders. We can offer you more money and faster than the other title lenders. We will get you a better interest rate too.
There will be no waiting around for days or even weeks to find out what the back is going to do. If your credit is bad then the option of going to the traditional banks is off the table. They will barely lend to people with good credit, so if you have bad credit, they simply will not help you.
We, on the other hand, specialize in bad credit loans and we will get you funded if your car will qualify with us and you can provide your proof of income to support the loan. Contact us today and talk with one of our title loan experts at 844 242 7467 and let’s see what we can offer you or you can apply online we will do our best to get you the emergency money loan that you need.