What You Must Know About Title Loans For Consumers

This ARTICLE On What You Must Know About Title Loans Was Written By Staff Writer at Gustan Cho Associates

There are many different types of loans that you have probably heard of. And among the main ones are title loans. Title loans, at times, referred to as pawn loans are types of loans where your car, motorcycle or any other titled property is used as collateral. The loans are popular due to many different reasons. First, it is easy to apply for a title loan and secondly, the funds can be approved in as little as 24 hours. If you need quick cash, applying for a title loan can be a perfect alternative to selling your car. In this article, Gustan Cho Associates will explain and discuss What You Must Know About Title Loans.

Here are some of the most important things you need to know about title loans

You do not need to have a perfect credit score to get approved for title loans

Most auto loan companies do not consider your credit score to have your loan approved. When applying for the loan, it is only your vehicle’s title which is required. This makes it easier for borrowers with bad credit to qualify.

You can still possess your vehicle

These loans only require your vehicle’s title as collateral, and not the vehicle itself. This means that you can still use the vehicle even when the loan is approved, and you can only lose it when you default on the loan.

You can qualify for large loan amounts

Most people usually apply for these loans for short term financial needs. But even if you only apply for the loan once, you can still qualify for large loan amounts. One of the factors that determine your maximum loan amount is the value of your vehicle. But there are also lenders who will require you to have a steady source of income for the loan to be approved.

Your motorcycle can also be used as collateral

Another interesting fact about title loans is that besides the car title, motorcycle titles can also be used as collateral for the loan. Just like car title loans, it is also easy to qualify for motorcycle title loans provided you meet all the lender’s requirements, which include proof of income, a government-issued ID card, proof of full coverage insurance among others.

Short approval time

Depending on the lender you decide to work with, you can get your title loan approved in as little as 24 hours. This is because they have a fast and easy application process. It is also easy to understand the terms and conditions of the loan and since title loans can be easily approved, they can be a good option if you need instant cash to cover for emergency financial situations.

What You Must Know About Title Loans And Approval

There are many benefits to applying for a title loan. However, it is also important to only take out the loan if you can afford to pay back the debt. Otherwise, you may end up losing your vehicle and defaulting on the loan will also have a negative impact on your credit score. Ensure that you do background research and only work with a lender who offers the loan with affordable interest rates and flexible terms and conditions.