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If you’re looking for a quick and easy way to get access to some extra cash, then taking out a title loan might be the perfect option for you. A title loan allows you to use the equity you have in your car as collateral to get a loan. For example, premium title loans in Tampa could be your best option if you are in Florida when there are no prepayment penalties, no credit checks needed, and you get quick approval.
There are a number of advantages to taking out a title loan, and in this blog post, we’ll discuss four of the top reasons why it might be the right choice for you. Read on to find out more.
1. Your Credit Score Doesn’t Matter
When you apply for a loan, one of the first things your lender will do is check your credit score. This can be a barrier to obtaining the money you need if you have bad credit or even no credit at all. With a title loan, your credit score is irrelevant.
Title loans use your car as collateral, meaning that you may still be eligible for the loan even if you have a poor credit score. This makes them an ideal option for people looking to borrow money in a hurry but with a less-than-perfect credit history.
The approval process is also much quicker with title loans, so you can get access to the funds you need faster. Moreover, with a title loan, you can use consolidation to pay off the debt faster by mixing up two loans.
2. It Helps You Avoid Late Fees on Other Loans
If you are afraid of late fees on your utility bills or other loans, a title loan can prove to be a lifesaver for you. Since these loans provide quick access to cash, you can use them to pay off bills or make payments on existing loans before the due date.
By avoiding late fees or defaulting on other loans, you can save yourself from damaging your credit score and paying more than you would have had you taken out a title loan in the first place. Additionally, if you use a title loan responsibly and make sure to pay off the loan within the specified time frame, you may even be able to improve your credit score over time.
3. A Title Loan has Flexible Payment Plans
Many title loans have fixed rates and repayment periods, allowing borrowers to plan for their financial future and avoid falling behind on payments. Furthermore, as mentioned above, these loans won’t need a great credit score, so even a bad credit score will get you qualified for the loan.
With a title loan, you will have the option of a fixed payment plan, which is when you pay a certain amount each month until the loan is paid off.
4. You Can Borrow Up to Your Car’s Value
A title loan lender will use the value of your car to determine how much money they can lend you. This way, you will be able to lend way more than a bank will pay you with a traditional loan. This will save you from selling your car in case you need instant money.