Reasons to Consider an Auto Title Loan
Property damage, emergency room visits, car repair costs – the list of reasons people need money could go on and on. While there are many reasons to need funding, there are quite a few options for getting the funds to help.
So why choose an auto title loan in California? Let’s take a look at three reasons:
- 1. More convenient
- 2. Less restrictions
- 3. Keep Driving
Sure, traditional lenders such as banks and credit unions offer personal loans. However, in order to qualify, many of them require you to become a member of their institution by opening an account with them. Already, they’ve added an additional process to slow you down from getting the money you need.
Besides that, many of these traditional lenders also operate only during “banker’s hours.” That means you’re required to visit their institution during their business hours. If you’re already strapped for cash, the last thing you want to do is miss time from work to visit a bank and sit there for hours filling out paperwork and answering questions.
On top of everything else, did you know that traditional lenders can take up to 30 business days to decide whether or not to even give you the loan? In fact, they can take up to 30 days just to let you know you filled out something incorrectly on the application form. Who has that much time during a financial emergency?
An auto title loan, on the other hand, requires less paperwork and documents to sign. And a company like LoanMart operates seven days a week. That means you can apply for an auto title loan in Chicago from the comfort of your home whenever you want. Also, with less paperwork and processing, you may get the money you need by the next business day.³
If you apply for any type of loan with a bank or credit union, in most instances they will make their decision on whether or not to lend you money based on your credit history. Sometimes, financial problems are out of your hands, but the banks can still punish you for it. How are you supposed to get back on your feet if no one can see past that?
With an auto title loan, your credit history may be looked at, but the credit score requirement is not as strict as traditional lenders’ because the loan amount is based on the equity of a borrower’s car.¹ Yes, a financially responsible auto title loan lender like LoanMart will want to make sure you can pay back the money you borrow. But they’re mostly concerned with your ability to make monthly payments on time.
Some people may be thinking about other non-traditional loans, such as a payday loan. One thing to remember is that payday loans typically range from $100 to $300, are short-term and are to be paid back in full in 31 days or less. Auto title loans, on the other hand, are not only designed to advance much larger loan amounts (thousands of dollars), but auto title loan terms can range from 12 to 48 months.
As if those two reasons weren’t great enough, you can keep driving your car for the duration of the loan. If you’ve bought a car using an auto loan from a bank, then you’ll notice it’s not much different. The lender only affects the title and registration as lien holder until you pay the loan off. That’s much better than an auto pawn loan from a pawn shop; they want to keep your car until you pay them back!
When you look at the above facts, you’ll see that if you need money now an auto title loan would probably be your best bet.