Financial Help: 5 Things To Know Before Getting A Title Loan
Are you wanting to buy a vehicle or home but don’t have the money to invest right now?
Getting a loan can be a lengthy process, but depending on the type of loan you apply for, you could get money in a matter of hours.
If you want to purchase an asset, consider getting a title loan from a private lender or company.
Continue reading to discover how a title loan can be the sort of financial help that you need for a car or home!
1. What Is a Title Loan?
The first step to getting financial help for an asset is to understand what a title loan is.
Title loans are most often used for vehicles, but some people use them to borrow money for a house. A title loan is where you get money from a lender, who then claims a right of lien over the car or house. If you were to stop paying the lender, they can take the vehicle or home as repayment.
With title loans, the lender must receive the title to the car or the home. The borrow will receive the money and get the title back once the loan is paid off.
2. You Can Apply Online
One of the fastest ways to get money from a title loan is by applying for one online.
There are various ways to get a title loan, but the easiest way is through loan websites. You can complete an application for title loans online and get approval within less than 10 minutes. Most reliable lenders will be able to transfer the money into your account within a matter of hours or by the end of the day.
3. Title Loans Are for Short-Term
Did you know that the average title loan lasts 15 or 30 days in the United States?
Whatever asset you are buying will be collateral during the time that you are paying the loan off. During this payoff time, the lender will hold onto your title, which helps encourage people to quickly pay them back.
Talk to the lender to determine the timeline of your loan. Your finances and income can influence the payback terms and extend this to a longer period. One of the reasons that you want the loan to be short-term, however, is because of the interest rates.
4. You Don’t Need a Job
Most people are unaware of it, but you don’t need to have a job to get a title loan.
Although lenders might have concerns about giving you money, they can still lend it to you without a job. The number of lenders will decrease because of the risk associated with you not having a job but there are other ways of proving that you can pay them back. Some people use social security checks, alimony, and other sources of revenue to pay these loans.
5. Your Credit Score Doesn’t Matter
When it comes to title loans, your credit score isn’t a large deciding factor.
This is because, the car or home is collateral, so if you can’t pay it back, the lender will take them back. Larger companies may factor in your credit score but private lenders don’t look into it as much. Having a good credit score, however, can help influence your interest rates and payback terms.
Get the Financial Help You Need
When it comes to getting financial help for a vehicle or home, title loans are a great solution.
Title loans are short-term loans that allow you to borrow money from a lender. Once the loan is paid off, you can get the title back. This process has been streamlined to the point where you can get money in your account within a day.
Don’t be afraid to talk to a financial advisor about the benefits of a title loan and if it can help you quickly pay off your debt.
Be sure to check out our blog for more articles about financial management and handling personal finances!