Once in a while, we all run into financial trouble. This could be related to unexpected spending, medical bills or expenses beyond control. In such hard times, all you would need is a quick advance, and you would want the process to be as simple and fast as possible. The conventional loan approval process is not just complicated, but also length. Instead, you can think of title loans. In this post, we are discussing an overview of what it takes to get a title loan with aspects that need attention.
What exactly is a title loan?
A title loan is a loan on your vehicle. In other words, the collateral for the loan is your vehicle and nothing else. For many applicants, standard loans and even advances like cash and payday loans don’t make much sense, unless they are employed and have a steady income. Title loans require you to pledge the vehicle as a collateral, so even if you don’t have a great credit score, or are not employed, you can still get an advance.
How does it work?
You need to go through an approval process, which is fairly quick. First and foremost, find a lender that specializes in title loans, and you need to take your vehicle along. Once you submit the papers, they will do an inspection of the vehicle for approval and make an offer. You can ask for an amount within that offer, or the entire amount, as per your requirements. Contrary to what people often think, they don’t have to give away the vehicle for the title loan. You can drive your trailer, RV or car around, and the repayment can be done as per the decided schedule, usually through monthly instalments.
Factors to consider
Since title loans are offered on a short notice and without credit check, you are expected to pay a higher rate of interest. Responsible borrowing is critical in such situations. Don’t be carried away with the offer, especially when your vehicle is in a pretty good shape. Borrow what you really need and check the terms and conditions of the loan in detail. Ensure that you are capable of repaying the instalments, or else, you may have to lose the vehicle.
A title loan could refer to loans on RVs, boats, and even motorcycles, so check all the options and apply carefully after evaluating all the pros and cons.