What Makes Car Title Loans Better Than Traditional Loans?Fast Action Finance
Traditional loans are any of those loans that you can avail of from financing institutions that come with either fixed rates or adjustable mortgage rates. These ones have sets of requirements that you should comply with and also require some collateral that the institution will use for their protection in case you default on payment. You have to go through some background check before you get approved for these loans.
Car title loans, on the other hand, are loans where you can use your car as collateral to the loan you are going to acquire from the company. The lender will compute your car’s equity before lending you the money you are eligible to borrow from them. In case you default on payment, the lender will make use of your car’s title in order to recover whatever is left from the amount of loan you have with them. It is said that car title loans are better than traditional loans for the following reasons.
They are instant loans
In the case of traditional loans, you have to wait for a background check before getting approved and eventually getting the amount you want to loan from a lender. With car title loans, you can get your money instantly, usually in less than a day after you have applied for the loan. You do not have to wait another week or so just to use that money for the emergency that you already have at the moment.
You can roll over your title
There is always that chance when you might default with a car title loan as you will with a traditional loan. With a traditional loan, there is less chance that you can roll over the debt the next time. If you avail of a car title loan and you may find yourself short of cash to pay the amount due, you are given two options by the lender. It is either they take your car right away once you have defaulted or better yet give you the chance to roll over the title loan once again but with a higher interest rate.
Information about car title loans is always available online
You can simply visit the website of the lender to find out about what is in store for you in case you avail of a car title loan with them. Take note that policies may vary from one company to the other thus it pays to take note of differences to find out which lender will help you best at this instant. Read the webpages, not just the homepage, to get valuable pieces of information you will need when applying for and repaying your loan. This will also make you know about possible schemes and scams that may come with a car title loan. With traditional loans, since there are plenty of types, you might end up confused with the bulk of information you see online.
Apart from being available, information is guaranteed updated too
That is, if you have already found the most reliable companies out there. These lending companies will take time out to have their website’s information updated at all times for you to have a clearer picture of how it will work for you and for them at the moment. They can spend time updating their website just to guarantee you get the best services out of what you are expecting from them. If they care less for the integrity of their information then there is reason to drop them and scout for another company that offers better options for you.
You are allowed to apply online
Yes you can use online websites to your convenience not only in terms of learning more information about the product or service but also for the purpose of applying for the loan instantly. This reduces the usual paperwork required with traditional loans. Simply fill out the online application form then wait for the call or an email from a company representative who will inform you about your chances of applying for a loan. You have to provide your car’s make and model and all other details being asked on the application form. Fill the form truthfully to avoid hassles later on.
You can apply for this type of loans even when you have bad credit
Many traditional loans out there will not approve your loan if you have bad credit. With car title loan as an option, you need not worry about this anymore. Since you will use your car as collateral, the lender will not have second thoughts of approving your application.
Car title loans are indeed the best option you have if you are into an emergency. You simply have to make sure that you transact with the best company that guarantees your needs are prioritised accordingly.