If you need fast cash, there are not many choices available. If you can't borrow from a friend or relative, you will need to turn to professional lenders for the money. If your car is paid for or you have equity in the car, you should consider getting a title loan. There are several good reasons to choose this type of loan. The following are three of the most important ones.
A lower cost option for those with bad credit
If your have bad credit, your options to get quick cash at a reasonable cost are limited. One popular option is to use a payday loan, but the interest rates are very high. Title loans have lower interest rates than payday loans, because they are secured by the value of your car, and this is true even when your credit rating is low.
You have more time to pay back the loan
A title loan gives you more time to recover from a financial emergency. With a payday loan, you must pay back the money quickly. In fact, a payday loan is more of a cash advance against your next paycheck than a traditional loan. A title loan is a more conventional loan; therefore, you will be paying back the money in installments over several months. If you have to pay back an emergency loan too quickly, you may never dig yourself out of a financial hole that the emergency puts you in.
You don't give physical possession of your collateral to the lender
If you were to get a loan at a pawn store, they will want to take possession of your collateral. For example, you may use a diamond ring as collateral for your loan. Many people feel uncomfortable doing this, because they are not confident that the collateral will be safely stored. With a title loan, it is only the ownership title that is turned over to the lender. You can keep the car, and use it the same as you did before you got your loan.
Title loans are offered online by lenders,so you can fill out a quick application and get fast approval. It should be noted that because your car is being used for security against the loan, the lender will want to do a quick inspection to verify its value. Many title lenders will send a representative to your residence or place of work for this inspection. You can exchange the car title for a check at that time. You may also have the option of having the money deposited directly into your bank account. For more information, visit sites like http://driveittitleloan.com.