What Is A Title Loan?

If you are in need of emergency cash, getting a loan is a good option. However, you might not be able to get a personal loan from your bank, which means you need to look for other methods. One of these methods is a title loan, which is a type of loan based on the value of your vehicle. In return for the quick cash, you hand over the title to your vehicle. It is incentive for them to approve the loan, because if you do not pay it back on time, they retain ownership of your vehicle. Here is more information about this type of loan.

What is the Approval Process?

One of the great things about choosing a title loan is that you get approval almost instantly. Similar to a payday loan, you simply show up to the loan place, provide your necessary identification and any documentation they request, and fill out an application. They will take the title of your vehicle after looking up the value of it. The value of your car must be more than the loan you are getting in order to get approval. Different title loan companies will have different guidelines and restrictions for approval.

Why Should You Choose a Title Loan?

There are many advantages to choosing a title loan when you need emergency cash. First of all, once you are approved, you get the loan money right there. There is no waiting for a check to clear or a deposit to make it to your bank. They will give you cash before you leave their establishment. Another benefit is that while you are handing over your title, you don't actually have to leave your car there. Only the title is being used as collateral, so you can continue using your vehicle without any problems.

Are There Any Disadvantages?

The main disadvantage to a title loan is that you risk losing your car if you fail to pay back the loan in time. However, many title loan companies will work with you if you are a little late on payment but want to keep your vehicle. If you can't make the loan payment, let them know right away to see if something can be worked out. Another disadvantage is that there is generally a high interest rate, so the amount you pay back is going to be higher than how much cash you received.

If you own a vehicle and you need emergency cash, places like #1 Cash Stop may be your best bet for being approved for the money you need now.