What Makes A Car Title Loan Different From A Personal Loan?Fast Action Finance SEO
Are you looking for some extra cash to fund a project that you are passionate about? Then taking out a loan to fund your interests could be your best option. There are many types of loans out there for you to pick from, but if you are looking for quick cash, then you could try taking up a car title loan. There are companies that offer vehicle title loans in Brampton, Mississauga, Toronto and the GTA. However, before you get the loan, finding out why it is unique could help you quicken the decision-making process.
Car title loans, also known as simply title loans, are generally short-term in nature, and the lender uses your car equity as the collateral. The borrower should own the car he or she is using as collateral, or know the person that owns it. For example, an individual may take out a title loan under a car that is in their spouses name, if their spouse co-signs the loan.
Car title loans usually can be given for up to one and a half years and can be paid off in 30 days or less if the borrowers wishes. In the event that the lender is not paid on time, most are understanding and will work with you to extend the loan or make other arrangements that help you and suit your needs. Nearly every title loan can be processed the same day, with funding happening immediately.
The title loan is not the only way one can get cash fast even with a bad credit score, self employed and unemployed. There are options like the Motorcycle Storage Loans, Collateral Loans, Repair Loans, personal loan, pay day cash loans, banks, and credit card loans. If we pit the title loans against personal loans, how would both fare? Moreover, what would it mean for you?
Car loans vs. personal loans
Car title loans and personal loans are two of the most common financial options for obtaining a loan. If you meet their lending requirements, they can be easy to maintain. If we compare the two, you will be able to decipher for yourself what makes car title loans unique.
The advantages of a car title loan are that the borrower gets the money very quickly. It is a simple process that only requires the lender to determine the worth of the car to ensure that it is worth the amount of the money being borrowed. The second thing that you need is the car ownership. To secure a loan in a car title doesn’t require a background check or a credit check. If you have a bad credit score and need cash, then obtaining a car title loan may be good for you. The third advantage is that even after you get the loan, you can still keep and drive the car.
The personal loan gives the borrower funds from a lending company or institution. Personal loans are generally given in banks and can be secured against anything of value like a house or home. These institutions do extensive credit checks and usually have strict requirements regarding employment and income.
One of the advantages of the title loan is that it has no restrictions on how the money is spent and that the payment structure is flexible.If you have poor credit score then you will not be eligible for a personal loan from a bank, but by using your vehicle you can unlock its equity and borrow against it.
By comparing the two, it is easy to see why the car title loan is the better option for you. It is easy to acquire and you do not need to have a perfect credit score to be eligible for a loan. If you are looking for a title loan that offers the best in service and flexibility, talk to us today, you will find that we listen to your needs and try and accommodate to the best of our ability. We can even process your loan online using our eLoans and there would be no need for you to come to our office.