There is a lot of information out there about title loans. Some of this information is good and some of it is bad. It is important to note that title loans are not ideal for every situation and because of this, there can be negative drawbacks to these types of loans. However, they have a place in society and there are many benefits to them. Learning about the benefits will help you determine if a title loan is a good loan type for you.
You Can Get a Loan Quickly
One of the biggest benefits to obtaining a title loan is that you are able to get a loan quickly. Most times, you can walk in and walk out with cash or a check within an hour or so. If you need money fast, and don’t have time to take out a loan with a financial institution, this is a great option.
You Can Get a Loan Regardless of Your Credit Score
If you have poor credit, your options for getting loans are extremely limited. You may be unable to secure a credit card or take out a traditional loan from a financial institution. But, as long as you have a lien-free pink slip to a vehicle in your name, you can get cash for that title, regardless of your credit score.
You Can Get a Loan Regardless of Your Income
If you work a job that does not have a steady paycheck, or if it is difficult to prove what you make, getting a loan can be challenging. But with a title loan, you don’t need to make a certain amount. The title of your car is kept as collateral, so the risk to the lender is low. As such, they are not as stringent as collateral-free loan lenders.
You Get to Keep the Car While the Loan is Out So There’s No Change to Your Life
Another major benefit to using a title loan is that it doesn’t really change your life. Many people think that you lose the ability to use your car if you take out a title loan and that isn’t the case. You keep your car and can still use it.
They May Help Your Credit
The last advantage to taking out a title loan is that some title loan companies will report the loan to credit reporting agencies. This can help you improve your credit score if you make your payments on time.
Learning about the benefits and drawbacks of title loans will help you make an informed decision about whether this type of loan is right for you. Some of the benefits to title loans include being able to secure the loan quickly, being approved for the loan regardless of your credit score and income, experiencing little life change because of the loan and improving your credit.