Car Title Loans: Consumers Turn To Alternative Financing Options |
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Laura J. Solomon
October 13, 2013
There are many people who do not realize that car title loans are a great way to get through a tough financial situation, but not something that they should rely on week after week. When you come up short on bills or an emergency arises, getting online car title loans can be a great option because it will allow you to get the money you need in a very short period of time.
Unlike traditional loans that you get from a bank, online auto title loans do not require weeks or months for approval. You will be able to find out if you were approved for the loan within just a matter of a few minutes or hours.
The reputable car title loan lenders understand that not everyone has outstanding credit. Things come up from time to time and they can make it nearly impossible for you to have a perfect credit history. With traditional loans, this can hamper your ability to be approved for a loan, but not a title loan. A title loan lender will not even run your credit score to see what it is. The company takes the value of your car and base your ability to get a loan for a specific amount off that value. When you get a title loan, you do not have to worry about paying an interest rate on the loan either. Rather than paying exorbitant interest rates for the loan because of poor credit history, you are required to pay a set fee. The fee is based on the amount of the loan, rather than a credit score. That means that someone with great credit will pay the same amount for a loan as someone with credit that isn't as stellar.
When you apply for one of the reliable car title loans, you do not have to worry about explaining for what you need the money. One of the biggest hassles about getting money from a bank is that they ask for what you need the money. That means that if you are behind on a few bills, you have to explain to them what the issue is. They may ask you how you plan to pay off the bills, how you plan to avoid the situation in the future, and what kind of savings plan you are going to start using. While these are things that you need to take into consideration, they are not things that you want to discuss when you are stressed about the fact that you need money sooner rather than later. Jumping through numerous hoops in order to get money can be a huge pain and cause you a lot of irritation. The lenders that offer title loans do not expect you to jump through any hoops. All they want is for you to repay your loan by the set date of repayment. If you fail to repay the loan by the date upon which was agreed, you could lose your car. The car title loan is a great way to get money when you need it, without the hassle that comes with a traditional loan.