Title loans can help borrowers secure funds quickly when they’re in a financial pinch. From a simple application process to less strict credit score requirements, a title loan can be a useful and easy option for borrowers that own a car. Here’s how title loans work and some benefits they offer so borrowers can decide whether this type of loan is worth it.
How title loans work
A title loan is a secured loan that lets borrowers receive funds using their car title as collateral. With these loans, the lender will appraise the borrower’s vehicle to determine how much it’s worth, then offer the borrower a loan amount worth 25 to 50% of its value. If approved for a title loan, the lender will hold onto the car title, and the borrower can keep driving their car as they repay the loan.
Benefits of title loans
Here are some benefits title loans offer:
Title loans often come with an easy application process that borrowers can complete in store or online from the comfort of home. The application process may only take a few minutes and require a few personal and financial documents and information like the car’s title, the borrower’s government issued ID, and proof of income. After the borrower submits an application, they can drive their car to the lender’s store location, where the lender will appraise their car and offer a loan amount.
Many title lenders offer an instant or quick approval decision and same-day funding. This means that borrowers can get the funds they need as soon as the same day they apply. This can be a great option for those that need to cover essential or emergency expenses right away.
Good credit not needed
Many title lenders have less strict credit score requirements and will consider factors in addition to the borrower’s credit score when making an approval decision, like their income, employment history, and the car’s value. This means that borrowers with any credit score may still get approved.
Larger loan amounts
Since the borrower provides their car as collateral to secure a title loan, this makes these loans less risky to lenders. That means a borrower may get a larger amount of money from a title loan than they might from unsecured loans.
How to decide whether to get a title loan
To decide whether a title loan is the right option for the borrower, they should consider their needs and preferences. These loans can be great for borrowers that need to cover an unexpected expense, such as a home repair or medical bill. They can also help borrowers get the funds they need for essential day-to-day costs, like rent, groceries, and gas. Borrowers that need a larger loan amount fast and don’t have great credit should consider getting a title loan to meet their needs.
The bottom line
Advance America offers title loans that can get borrowers the funds they need as quickly as that same day. With an easy application and instant approval decision, these loans are a great way to cover expenses fast. Better yet, borrowers don’t need good credit to get approved. Borrowers can visit AdvanceAmerica.net or a store location nearby to get quick cash today.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
About Advance America
Founded in 1997, Advance America, the country’s leading state-licensed consumer lender, seeks to help every customer achieve their version of financial stability through a variety of innovative, regulated and transparent small-dollar credit options