You're smart with your money. But no matter how smart you are, sometimes things just happen, and you might find yourself strapped for cash when an important bill is due, or when a major appliance breaks down. If you have a paid-off vehicle, you can get the money that you need by obtaining an auto title loan. You may have only heard about these loans in passing, but it's good to know their value. Here are three benefits of obtaining a title loan if you're in need of cash right away.
Benefit #1: Any Income Level Can Qualify
In today's economic climate, people are finding it difficult to obtain financing for a personal loan. Typically, banks require a perfect credit score and a substantial income level to offer a loan with no collateral. An auto title loan, on the other hand, is obtainable to anyone regardless of income level. However, at least some income is needed.
Benefit #2: The Process is Quick
When you apply for an auto title loan, you won't need to wait around in the banker's office for hours. Instead, you simply provide them with these documents and you'll have your loan within minutes:
- vehicle title
- proof of residency
- photo ID
- proof of income
- social security number
The facility uses these items to determine the value of the vehicle, to learn what size loan that you're entitled to and to ensure that you are who you say you are. Keep in mind that you're only allowed to borrow a sum of money that's equal to or less than the vehicle's value.
The lender does not run your credit report. They will simply own the car if you don't pay up as agreed.
Benefit #3: You can Use the Money For Anything
There are no limits or requirement on how to use the money. However, these loans do have high-interest rates, so it is never a good idea to get an auto title loan to go on vacation or gambling. However, here are some situations where they can get you out of a jam:
- plumbing emergencies
- emergency room visits
- major repairs on another vehicle
- travel for family emergencies
Obtaining an auto title loan is one of the easiest things you'll do. However, it's important to read all the terms and conditions before you sign on the dotted line. Use these loans responsibly and always pay them back on time. Before you know it, you'll be able to concentrate on the issue at hand, instead of how you'll pay for it.