Before you decide to borrow money, you need to know your options. After all, some loans do tend to have interests bound with their terms and conditions that can leave you more in need of cash than you originally started with. You could turn to your family and friends for a loan, but what if they are struggling to meet the financial obligations of their own?
There are traditional bank loans, and then there are short-term loans that can help you out almost every time you require some quick cash.
A traditional bank loan can be acquired by going to a financial institution – bank or credit union – and filling out an application and then providing all of the requested documentation that is needed to process the loan. Typically, a borrower will be asked for things such as employment history, credit history, and other background information. The lending institution will then begin a lengthy process of examining the creditworthiness of the borrower. This can take weeks.
Car Title loans, on the other hand, are becoming increasingly popular due to their easiness to generate quick cash. A potential borrower has just to fill out an application to start the process. Many title loan companies provide their customers with the option to fill out their application online. All that needs to be verified from the borrowers are their identity and residency. The next step is to make sure the title matches the car or truck and then assess its value. Once the title loan company has an approximate value for the vehicle, they can finish processing the loan.
The process of applying and getting a loan from a car title company is easier than from a bank. The entire process takes an hour, and there are no credit checks or employment verifications required for a person to apply for a car title loan. Since the vehicle is offered as collateral, there is no need for all of the paperwork involved with processing a conventional loan. It’s easy to understand that the lender holds the title to the vehicle, and if the borrower does not repay the loan, the lender becomes the owner of the car or truck.
However, like with any other loan, there are some risks involved. Here are some pros and cons of car title loans.
The positive side
One of the best advantages of this type of loan is that you can easily qualify for a car title loan even if your credit history is not that great. The lenders are governed by the value of your car; as long as the value of your car is greater than the requested credit, they will not hesitate to approve it.
Another advantage offered by car title loan companies is that you can continue to use your car after the loan is granted to you, as the car acts as a guarantee, not the money. You can use your means of transport while fully complying with the fees of the payment.
One of the reasons why car title loans are given a better preference over bank loans is because of the speed of their approval. You can get the loan almost immediately. All you need is to show what you have to offer in case you cannot pay back the fees that the lender demands, and in this case, it would be the car; If you meet this requirement, you will leave the place with the money in your hands.
The negative side
As opposed to bank loans, car title loans do not have a lot of terms and conditions that come with the contract when you acquire the loan in the first place. Depending on where you live and the lender you are working with, you can easily pay off both interest and fees as you would with a bank loan. Be sure to compare prices to get the lowest interest rate.
When choosing a lender, make sure you understand all the terms of the loan, including the interest rates. Several federal laws require that the title loan company disclose all rates, fees, and problems.
Do understand that a car title loan is a short term and you have a limited time in which you have to pay back the agreeable amount. With banks, you can take out a long-term loan, but then again, you have to pass the credibility test first. You will only be granted the loan if the bank thinks you can pay it back.
How much money can I get?
Since the loan is based on the value of your vehicle, you can get from 30 to 50% of the value your car or motorcycle has, but although it might seem tempting, it is not recommended that you loan all the money they offer you. Remember that the higher the debt, the harder it will be to pay back so be careful to loan only the amount that you know you can pay back.
What must you take into account before applying for a loan?
The first thing you should look out for when applying for a loan are the legal terms and conditions that come with the contract. The most advisable thing is that you contact your lawyer beforehand to avoid any mistakes you can later regret.
Since the lender has the right to generate large charges in case you break the agreement of payment dates, It is advisable that you do not fall behind on your payments.
Receive your cash today
If you need quick money for your emergency bills or other financial aid, consider car title Loans at MVP. MVP Car Title Loan has developed a standardized procedure that provides you with the necessary funding within a short period of time, and we have implemented a generous and lenient repay policy that allows you to pay the borrowed amount according to your ease.
You can apply for the loan as follow:
- Apply online
- Send the required documents
- Collect your funds