If you are in need of quick cash but have less than perfect credit, there are several options that are open to you. However, if you own a car and have the title to it, your best option for money is an auto title loan. The following are a few advantages that this type of loan offers you.
You can get a loan with a longer finance period
There are many lenders who advertise quick cash, and these loans can be approved quickly. But they are designed to be the equivalent of an advance on your next paycheck. As such, they are only for a couple of weeks. The problem with this is that you may need money for longer than a couple of weeks. A title loan can often be financed for several months. This gives you more time to take care of your finances and also pay back the loan in several payments, versus the lump sum of a payday type loan.
These loans typically have lower interest than cash advance types
The payday loans that you see advertised will usually have higher interest rates than title loans. The reason for this is that a title loan offers collateral to the lender. If you don't pay back the loan, the lender has the title of your car. They can take possession of the car, and then sell it to get their money back. A cash advance loan is dependent upon your job as a form of collateral, but it is still an unsecured loan. An asset, like a car, can be used for a secured loan. And because you are offering security for the loan, the amount of the loan will be dependent on the value of your car. Cash advance loans are limited to a percentage of your typical paycheck.
You get to keep your car
If you are thinking about pawning something, you will need to get it appraised by a pawn shop, and then you will be made an offer. Whatever the item is, you will need to leave it at the pawn shop. If you get a title loan, they will keep your title, but you can keep your car. This means you still get to drive it to your job and other needs you may have. After you pay back the loan, you will get your title back.
Title loans can be as fast to get as a payday loan. Typically, the lender will want to inspect your car to make sure it is running and that there are no major issues. Remember, this is collateral for the loan, so the lender has to verify its condition. Also, the lender will want to verify your income. Although it is a secured loan, the lender would rather you back the loan.