There are several reasons a quick title loan isn't a bad idea. However, your friends may discourage applying for a loan. They may say these loans are too expensive and too risky. But at the end of the day, you have to make a decision that works for your situation. And if you can't get a traditional loan and you have no other options, a title loan might be the answer when you need a sizable amount of cash fast. Here are seven reasons a quick title loan isn't a bad idea.
1. No Credit Requirements
No credit requirements is one of the reasons a quick title loan isn't a bad idea. It doesn't matter what you've done in the past credit-wise. As long as you have a free and clear car title and regular monthly income, you can qualify for a loan and get the money you need for any purpose.
2. Same-day Cash
During an emergency, you may need cash immediately. Fortunately, with a quick title loan, it's possible to get money within 24 hours or less. It only takes a few minutes to complete an online application, and most instant approval notifications arrive within 10 to 15 minutes.
3. Low Interest Rates
Although credit isn't a requirement for a title loan, if you have good credit, you may qualify for a rate as low as 3% -- cheaper than most bank rates. This helps you enjoy an affordable monthly payment that doesn't add to your headaches.
4. You Can Keep Your Car
A title loan is nothing more than a personal loan that uses your car as collateral. Therefore, if approved for a title loan, the lender will need your original car title. Since this loan isn't designed to complicate your life, you can keep your car while paying off the loan. The sooner you pay off this debt, the sooner you can get back your car title.
5. Option to Restructure Your Loan Payment
Let's say you get a title loan and agree to a monthly payment, and then a few months later you're unable to keep up with these payments. No problem. Many title loan companies are flexible and will restructure loan payments based on affordability. This might include extending your loan term additional months to reduce the payment.
6. Easy Repayment Terms
If you apply for a payday loan, expect to pay back the money within 14 days. A title loan is different, and depending on the loan company, you can take as long as 2 to 4 years to repay the loan. However, the sooner you pay back the money, the less interest you'll pay.
7. No Obligation
You have nothing to lose by applying for a quick title loan. The loan company will respond within 10 to 15 minutes with a free, no-obligation quote. Look over the quote and decide whether the loan works for you. There's no pressure.
Even though a quick title loan can be useful when you need immediate cash, these loans can be dangerous. If you don't pay back the loan, you could lose your car. Therefore, speak with a representative and ask plenty of questions. Make sure you understand how the process works, and only borrow what you need and what you can afford. What are other good reasons to consider a title loan?