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REDDITWhile it would be nice if everyone always had the money for the things they want or need, this isn’t often the case. As a result, many people must get a loan to purchase things like cars, homes and anything else they might need.
While there are lots of borrowing options, many of them require someone to have good credit or be in a good spot financially. Unfortunately, many Americans struggle with bad credit, which can make securing a loan difficult. Thankfully, there are some borrowing options that even those with bad credit can utilize.
One of the best and most popular options is to get a car title loan. A car title loan is when you use your vehicle as collateral for a loan. Thankfully, you will still be able to have your car and drive it around during this period. Because the lender has your car title as collateral, you will be less risky, even if your credit isn’t great. This article is going to look at a couple of the benefits of car title loans for borrowers everywhere.
They are Quick and Convenient
Oftentimes when you need to get a loan or borrow money, you need it quickly. Unfortunately, many loans have lengthy application and approval processes. It can sometimes take days or even weeks for the money to arrive into your account. This simply will not work for someone who needs money in a day or even a few hours.
Thankfully, some companies that offer title loans in California and elsewhere can have your money to you in as little as 30 minutes! This can really help you if you find yourself in a pinch. In addition to the money getting to you incredibly quickly, many car title loans have very short application processes. These can often be done entirely online from the comfort of your own home.
Your Credit Won’t Come Into Play as Much
When you are applying for most loans, your credit score will be one of the biggest things a lender will look at. It will often dictate how safe or risky of a borrower you are to them. However, when it comes to car title loans, your credit score won’t come into play that much. This is because the loan is based on the value of the vehicle you have put up as collateral.
The lender won’t care as much about your credit score as there is less inherent risk due to the vehicle being used as collateral. So even if you are one of the aforementioned people with bad credit, if you own a car with some value, you should be able to borrow against it. This makes it easier for a wide range of different people to secure a loan for the things they need.
Flexible Repayment Options
One of the best things about a car title loan is that most will provide you with a schedule up front that will illustrate when the loan needs to be paid off by. In addition to having a clear and upfront schedule for your repayment, these payments can often be flexible as well. Many lenders will have rules about paying a loan off more frequently or will have stiff penalties for prepayments.
Thankfully, many car title loans don’t have these in place so you are free to pay off your loan as quickly or as slowly as you want. Of course, this isn’t always the case, so be sure to know the unique terms of your individual loan before deciding to pay it off early.
Hopefully, this article has been able to show you some of the great and unique benefits of car title loans.
