While it would be nice if no one ever had to borrow money and everyone always had as much as they need, that’s not the case. Emergencies and other unforeseen events can occur and can cost you the money you just don’t have. These emergencies are some of the reasons why tens of millions of Americans take out personal loans.
However, personal loans aren’t always easy to get. Many require a strong credit history or a good credit score. If you find yourself with a bad credit score, you might think there are no borrowing options for you. Thankfully, however, that is not the case. A popular borrowing option for those with bad credit is a car title loan. A car title loan is when you put your vehicle up as collateral to get your money.
This can make getting the cash you need easier but comes with the risk of potentially losing your vehicle. But in addition to the potential risk, there are many great reasons to consider using a car title loan if you own your vehicle and need some cash. With that in mind, this article is going to look at three benefits of getting a car title loan.
They Are Much Easier and Quicker to Get
When you need money for an emergency or upcoming large purchase, you likely need it fast. Unfortunately, many borrowing options can lead to waiting days or even weeks to get your money. Thankfully, going with a car title loan means you can normally get your money within minutes.
In addition to being faster to get, these types of loans are also easier. See, because you are putting your car title up as collateral, many lenders won’t mind that you have bad credit. This is because they take on less risk due to the collateral in place. Also, no matter where in the country you live, there is a good chance you will be able to secure a car title loan. There are providers of car title loans in California and nearly every other state across the country.
You Still Get To Keep Your Car
When many people think of car title loans, they think you have to give up your car for the duration of the loan and find another means of transportation. Thankfully, this isn’t the case at all. Only the title for the car is put up for collateral, and once you make the last payment, you are given the title back in full.
As a result, you won’t be stuck without a vehicle for the duration of the loan and can still use your car to get around. Of course, you still need to be careful. If you default on this loan, the lender will legally have possession of the title and could sell it to recoup the money you didn’t pay back. So when you take out a car title loan, ensure it is only for an amount you will be able to afford to pay back.
They Will Often Be Cheaper
When most people get a personal loan, they could potentially be stuck paying a relatively high interest rate. This is especially true for those who have bad credit. While this can get you the money you need, it can also come with quite a large cost. However, if you get a car title loan, you will save money in the long run.
Because your car is up as collateral, there is less risk being taken on by the lender. If you default on your loan, they are protected. This isn’t often the case in standard unsecured loans. This translates to lower rates which can save you a ton of money over the months or years of your loan.
In conclusion, we hope that this blog post has shown you some of the many merits of getting and using a car title loan if you need to borrow some money. While they are risky, they can save you a lot of money if you use them responsibly.
