If you need some cash and need it quickly, one method of obtaining cash to consider is getting a car title loan. This is an easy way to gain the cash you need for an unexpected expense. There are a few advantages and reasons why a car title loan may be the right loan product when you need quick cash.
Reason #1: Short Approval Process
Sometimes, something comes up, and you need the money quickly. Maybe your water heater broke, and you need cash to replace it. Or perhaps you have a cavity, and you need to get it taken care of. There are many reasons why you could suddenly need some more cash than you have on hand.
When that type of need arrives, you can't wait for weeks to get approved for a personal loan. With a car title loan, the approval process often takes only hours, although it can take a few days as well. With a car title loan, your ability to qualify for the loan is based on the value of your vehicle and your ownership stake in the vehicle, both things which are easy to verify, leading to a short approval process quickly.
Reason #2: No Credit Check
With most types of loans, such as car loans, personal loans, and mortgages, your credit history and score play a significant role in getting approved for a loan and how much money is lent to you. There is generally no credit check with most lenders with a car title loan. You should always ask, though, as some lenders may reserve the right to run a credit check. In general, though, even if you have bad credit, you can get approved for a car title loan as they are looking at your vehicle's value and your ownership rights, not your credit score, to determine approval.
Reason #3: Reasonable Payment Terms
If you get a payday loan, you are generally expected to pay the loan back immediately on your next payday. That doesn't give you that much time to get caught up or balance your budget after an unexpected expense.
You are generally given more reasonable payment terms with a car title loan. You will not have to pay the loan back with your next paycheck. Instead, you are going to be able to make payments over multiple months, allowing you to spread out the impact of the unexpected financial hit on your budget.
Reason #4: Keep Your Vehicle
With a car title loan, you are essentially tapping into the equity of your vehicle to secure a loan. So, you can access the vehicle's equity without selling it. As long as you make your loan payments, you will get to keep your vehicle. You only risk having your vehicle repossessed if you default on the loan. Otherwise, you can use the equity in your vehicle to help you get through whatever pressing financial need you are facing while maintaining ownership of your car.
If you need money quickly, don't want to have a credit check run on you, and want reasonable payment terms, a car title loan can be a great solution if you own your vehicle and your vehicle has some value.