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Do you need some fast cash, but a low credit score scares the banks away from giving you a loan? Some consumers find themselves a few dollars short of a rent or auto payment.
Title loans provide desperately needed cash for low credit consumers. Similar to any loan, title loans carry advantages and disadvantages. Read on to discover some of the benefits of using a title loan for fast cash.
Quick Access to Fast Cash
Unlike traditional loans, title loans provide you access to fast cash. Title loan requirements are less stringent compared to traditional loans.
The entire process for most title loans lasts less than 48 hours. On the other hand, personal loans can take a week before receiving approval.
Gaining quick access to cash helps with urgent payments. When the time window for a personal loan leaves you little time to spare, a title loan can provide the extra cash you need.
You Do Not Need a High Credit Score
Most banks will check your credit score before providing you with a loan. If your credit score is low, your loan application will not get approved.
Since title loans derive their worth from your vehicle, a lender will not ask for your credit score. Lenders do not ask for your credit score because the collateral (your car) will always exceed the title loan amount.
For many consumers with low credit scores, a title loan is the only available resource for fast cash.
You Keep Your Car and Get Money Fast
When you take out a title loan, you don’t hand over your car. You can continue to drive your vehicle while getting extra funds to cover an emergency or another expense.
As long as you pay off your title loan on time, you do not need to worry about repossession.
Title Loans Are Cheaper Than Cash Advances
Although title loans carry higher interest rates than the average loan, cash advances are more expensive. If you need fast cash right before your next paycheck, a title loan is the better choice.
Interest rates vary across lenders and locations. Compare interest rates before taking out a loan.
Build Your Credit Score
Taking out a title loan and paying it off will boost your credit score. A higher credit score will give you access to more attractive loans in the future.
Payment history makes up 35% of your credit score. Paying off your title loan will strengthen your payment history and raise your credit score in the process.
Want to Take Out a Title Loan?
A title loan gives consumers access to fast cash. It’s easier to qualify for a title loan than a traditional loan, making it an attractive choice for many.
Before embarking on your journey, review the title loan requirements to verify how much you can borrow. Bring proper documentation with you when you meet with the lender.
Regardless of why you need fast cash, title loans make that cash readily accessible.
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