There are a lot of different lending solutions out there and this can make it hard to decide what to do when you need to take out a loan. Some of the loan options are highly-debated instruments and this will include title loans.
Most loans receive mixed reactions in the media and from consumers. The media will often show loans in a negative light. However, title loan customers often state that these loans have saved them from financial ruin. These mixed messages make it harder to determine what you should do and what you should believe about loans. If you are considering a title loan, you should consider both the advantages as well as the disadvantages.
It Is Easy To Qualify For This Type Of Loan
The title loan application process does not require any credit checks according to TNL Car Title Loans. The only requirement you have to meet for these loans is that you should have a free and clear vehicle title. You also need to have a regular monthly income and state-issued identification.
You Can Apply For The Title Loan Online
There are hundreds of different lenders who offer this type of loan online which is ideal for a lot of people. In many cases, you will never have to enter a physical location to complete the loan process. Your loan will be handled on your computer and phone without any issues.
Same Day Approval
When you apply for a title loan, you could be approved for the loan on the same day as the application. There are times when you cannot wait for a week or more to get the approval of your loan from a traditional lender. If you are in this situation, this type of loan will be the best solution because of the speed.
The Cash From The Loan Will Be Deposited Into Your Bank Account
When you need a loan quickly, getting a direct deposit can be very helpful according to . This is what you get with a title loan so you never have to worry about the money getting to your bank.
You Can Borrow As Much Or As Little As You Need
The amount that you are able to borrow with this loan is determined by the value of your vehicle. If your vehicle is valued at $9000, this will be the maximum amount you are able to borrow. However, you do not have to borrow the full amount if you do not need to.
You Are Using Your Car As Security For The Loan
While there are many advantages to title loans, there are also disadvantages that you need to know about. The first is the fact that your vehicle is being used as collateral for the loan. This means that if you miss any of the loan repayments, the lender can legally take the vehicle.
Higher Interest Rates Than A Traditional Loan
It is important to note that a title loan will be a short-term loan solution. This means that you are going to be facing higher interest rates when compared to traditional loans. You will often be able to reduce the interest by repaying the loan earlier.
A Lien Is Placed On The Vehicle Title
When you take out this type of loan, the lender will place a lien on the title. This is done with the state motor vehicle administration and will only be removed when the loan is fully repaid. The lien will stop you from taking another loan for the vehicle until you repay the old loan.
A Title Loan Is Only Legal In 30 States
If you want to get a title loan, you will need to live in one of the states that allow them. There are 30 states that do this. You can apply online for the loan if you do not live in one of these states.
Additional Fees And Interest For Late Payments
Each late installment will increase the balance of your loan. This is due to the additional fees and interest that are charged.