Top 3 Reasons People Choose Title Loans
September 17, 2020 | June Mckaig
What are title loans and how are they useful? If you’ve made it to this page, you’ve most likely been asking yourself these questions. A title loan is a type of secured loan where borrowers can use their vehicle title as collateral. Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount. But why do people choose title loans as their loan resource?
1. Title Loans Don’t Require Good Credit
One of the most attractive features for those looking for title loans online include the non-restrictions when it comes to credit. Although most businesses will run a credit check, credit is not a major requirement when it comes to title loans. That means people with bad credit or no credit at all can still access a title loan, whereas many other loan types require a certain level of good credit to even apply.
Why don’t title loans require good credit? Since the loan is a secured loan, the lender doesn’t need to rely on your good word as a borrower (i.e. your credit score). So if you have bad credit, or even just credit that isn’t so great, title loans are still accessible to you.
2. Online Title Loans Are Easy Access
Title loans are available online or over the phone, so it’s not necessary to drive out to a store to conduct business. Specifically at Arizona Car Title and Payday Loans, applying online is easy. Getting started is as simple as clicking a button on your home computer, tablet, or phone. A loan decision is made within minutes of sending your online application. Then, associates come to you at a location of your choice to complete the necessary motor vehicle inspection and paperwork. The cash is directly deposited into your account the following bank business day.
If you do happen to prefer business in-person, you can travel to any of the title loan locations throughout Arizona, including Phoenix, Tucson, Scottsdale, and more. Online title loans are nice, but putting a face to the name can be a rewarding experience in and of itself. Regardless, the ease of access and the little time required to apply makes title loans attractive to those searching for a quick way to access money.
3. Continue Driving Your Car
Because the lender places a lien on the car's title but doesn't keep the vehicle itself, you can continue to use the vehicle while making payments on the loan. You will lose the use of the vehicle only if you default on the loan and the lender repossesses your car. Acquiring the money you need while still meeting day-to-day needs is important, and sometimes that makes a huge difference when deciding on what lending method to pursue. The ease of access in applying for and receiving a title loan makes title loans the only real accessible money-borrowing option.
Title Loans Get You Cash, Fast
Title loan places allow those with poor credit or those with very little access to money to potentially have access to more readily-available and usable financial assistance. Those with poor credit who need financial assistance can apply for title loans online or over the phone, convenient for the current climate, and be considered even with poor credit. You’re able to complete the form online, receive the money you need, and make payments—all from the comfort of your own home.
Title loans are useful for emergency situations or one-time financial assistance situations. Or, if necessary, installment loans can also help over time with periods of no loan in between. Those in desperate situations can quickly access this money and put it towards a medical bill, emergency repair, or whatever other financial stressor is occurring.