Why Getting a Car Title Loan is a Better Choice
As long as secured loans are concerned, car title loans are one of the best options to choose from and might prove unparalleled if your future is at stake. The prime reason behind is the fast availability. Few people might tell you that taking out a payday loan is a faster process. But before you take out any you should check out the time that car title lenders take to approve your loan.
You might not believe but sometimes the loan approval period comes down to as little as 15 minutes if everything goes perfect. If you are living in CA and in need of some emergency cash, fast car title loans in Lynwood, CA should be the call of the hour.
In contrast to traditional payday loans, the interest rates that car title lenders charge are pretty less and affordable – sometimes just 1/10 of the ones that payday lenders charge. Moreover, because of the secured nature of the loan, the lenders always remain certain about getting back their lent amount and therefore the borrower never faces any sort of creditor harassment.
Again, contrary to traditional secured loans, car titles loans sometimes allow you to extend the repayment period without introducing any additional interest or fees. Since the loan amount and the approval period completely depend on the car which you’re going to keep as collateral, you can minimize the loan approval time to a greater extent if your car is in sound condition.
Nevertheless, a clear title on the vehicle is another prime necessity for this kind of loans. If the title of the car is in your name, this speeds up the loan sanction procedure. Moreover, since the repayment period of this kind of loans are shorter (usually 15-30 days) if compared to traditional secured loans, i.e., mortgage loan.
While most lenders make a thorough check of your borrowing history and if the title is in your name, few lenders approve the loan just after you submit the application form thus speeding up the whole lending program.
In spite of lots of benefits of this type of secured loan the borrower can’t sit risk-free. Since the papers of your car’s title is kept with the lender until you pay off the entire lent money, if you somehow fail to meet the payments, the lender can take possession of your car. Moreover, like other defaults, this too puts a negative mark on your credit history and gives a blow to your score.
So before taking out a car title loan, you should reckon your potential and make sure you are capable enough to carry out the burden of the principal and interest rate effortlessly. You need to keep in mind that this kind of loan is only for emergency and short time requirements and should not be taken out for luxurious purchases.
If you are in a crisis, need some quick cash and on top of that, you don’t want to bear the saddle of a high interest loan, a car title loan is perfect for you as long as you know your limitations.
Category: Car Loans
