Why Using Your Car as Collateral is Better Than Selling an AssetFast Action Finance SEO
It is a reality of life that almost everyone at some point has moments when they face some financial constraints. When this happens, people look for different ways to acquire quick financing to solve their problems. Many people resort to selling their assets when faced with hard financial times. The disadvantage of selling an asset is that after solving whatever financial crisis one has, you are left with the debt of replacing whatever asset was sold.
If you are currently going through some financial strain, instead of selling an important asset, you should consider applying for a car title loan. Car title loans are a quick way to get fast financing in order to help you clear emergency expenses. Take a look below to see why applying for a car title loan is better than selling your asset when you need fast financing.
Easy process, quick cash
Car title loans take a very short time to process since all you need is proof of ownership of your car and valid insurance. You use your car, truck, van & SUV as collateral to get a loan and can continue using your vehicle as usual. Unlike conventional loans, you do not have to have a perfect credit score to get a title loan. In fact, your credit score is not even factored into the loan, it all depends on how much equity is in your vehicle. More money can be lent on vehicles of higher value compared to their cheaper counterparts.
You can still use your car
After applying for a car title loan, the lender will allow you keep using your car as you repay your loan. This means that your normal daily routine is not affected and can continue using your car as you normally would. The main disadvantage of selling an asset is that you keep the cash, however, you end up losing a valuable item. It may take you time to replace this asset and you must go for a given period of time without it. Selling an asset like a car can make it very difficult to get to necessary places, like to and from work or to the grocery store. In addition, there will be extra cost in repurchasing a vehicle, such as taxes and safety certification.That is why taking a car title loan can be your best option as you get quick cash and can continue to use your car.
The main advantage of applying for a car title loan is that once you repay your initial loan, you can always apply for another one anytime you require quick cash. This gives you peace of mind knowing that whenever you go through some financial strain, you have a way of acquiring quick funding.
Avoid payday advances
Car title loans come in handy for all types of people, even for those living on a steady paycheque. Emergencies can come up at any moment and you may not have the required cash at that particular time. Instead of approaching your boss for a pay advance, you can simply apply for car title loans which will give you time to repay without stress.
Title loans are not exclusive to cars and many other assets can be used as collateral for these types of loans. Assets such as motorcycles, water craft, equipment, machinery, classic cars and trucks can also be used as collateral. Some lenders will want to hold these items for the duration of the loan. The good thing about the lender holding onto your asset is that they can lend a larger sum of money since it eliminates the risk of the borrower fleeing with the asset.
Convenient repayment options
At Fast Action Finance, we offer quick and easy repayment options that are convenient for borrowers. The borrower can choose the length of the loan and how often they would like to make payments. Our loans are completely open and can be repaid at any time. That means if you come into money during the loan, you can repay it and only pay interest for the duration used.