Are you in a situation where you need money, but your bad credit is causing a problem with working with a traditional lender? If so, a vehicle title loan can be the answer to your problem for the following four reasons.
Long Financing Terms
If you have looked into a payday loan in the past, you are likely familiar with the terms of these types of loans. They are really short term, with most of them needing to be paid back within a month. It also requires a lump sum to be paid with no way to stretch out the payments over multiple months. This may not be realistic for your situation if you need the cash for a longer period of time. Thankfully, a vehicle title loan has a much longer term with the ability to pay it back over time.
Low Interest Rates
When comparing loans for borrowers that have bad credit, it is common for the interest rates to be on the high side. This is especially true with payday loans, which tend to have some of the highest interest rates out there. The interest on a vehicle title loan is going to be lower because it is secured with the vehicle you are using. You are seen as a lower-risk borrower because the lender is going to get back their money or the collateral in the end.
Access To The Vehicle
Many people have the misconception that using car title loans will mean that you give up your vehicle to do so. This is not true since you are only using the title to secure the loan. You end up getting the title back once the loan has been repaid but, until then, you have full access to the car. This makes a vehicle title loan better than using a pawn shop, which requires you to turn the item over immediately at the time to get the cash you need.
Fast Approval
The approval process will go much faster for you since you are using the vehicle to secure your loan. The lender will verify the value of the vehicle, which will determine how much money you can borrow. It is possible to get a vehicle title loan in a day or two, which may be crucial for your situation.
Contact a local vehicle title loan provider for more information about using their services to borrow cash.
Share1 January 2020
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