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5 Amazing Benefits of Car Title Loans

There’s no telling when an emergency could be upon you, and you’ll need some quick cash. Unexpected medical bills or a vehicle breakdown can quickly put you in a tough financial spot. Not everyone has a high credit score that makes borrowing cash possible. Whether you live in Bakersfield or Boston and have no credit or a low credit score, a car title loan may be the answer.

Borrowing from a bank or other traditional lending partner can be a long and frustrating process. Getting a car title loan can take as little as 24 hours, getting you the money you need with minimal hassle. If you own your car without a lease or a lien, you may qualify for a title loan.

Car title loans Bakersfield and Boston are simply a secured method of borrowing money. Your lender will evaluate your vehicle and loan you an amount based on the estimated value. As long as you meet your scheduled loan payments, you can keep using your car and get the money you need. Let’s look at a few of the amazing benefits of car title loans.

Quick cash

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With traditional loans from a bank, there is a lot of complicated paperwork and waiting for approval. Unless you have a good credit history and higher credit score, traditional banks are not likely to approve you for a loan. With a car title loan, the lender is getting the collateral of your car’s value as security. If you default on your loan repayment installments, you forfeit your vehicle, so there is little risk to the lender. You can have your vehicle appraised following a simple application process and have money in your pocket in just one day.

When you borrow from a bank, it could take longer than a week to get approved and then a few days to see your funds in your account. When you need money in a hurry, waiting for weeks just isn’t practical. If you are forced to wait too long for a loan, you could not only miss out on other bill payments, but get yourself in a deeper financial hole than where you started.

Low credit approval

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Car title loan approval is not determined by your credit score alone. The value of your vehicle is the primary consideration. Whether you have had financial difficulties in the past or not, your qualification for a car title loan centers around your car and not your credit. People who have low credit or an unestablished rating can benefit from a car title loan’s easy approval. Tftitleloans.com will provide you with some great additional information. So visit their website and find more about it.

Many people who end up in an emergency financial situation don’t consider borrowing money as a viable option. For those that have poor credit, the idea of going to a bank or lender may seem like a nightmare. Getting refused for a loan can be devastating and lower your credit rating even further. The advantage of title loans is that your low credit rating may not be an option that is considered during the approval process. If your car has a value, you may receive a loan for that amount in less than 24 hours.

Rebuild credit

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When you have poor credit, it can be challenging to bring it back up to an acceptable level. Rebuilding your credit requires gaining credit and making consistent payments to show responsible habits. Unfortunately, when you have poor credit, it is tough to get more credit of any amount to start rebuilding. With car title loans, you can get approved for a credit arrangement with less hassle and gain an opportunity to build your credit score back up to where it needs to be.

We all make mistakes with our finances at one point in our lives. Naive spending as a young adult, or problems paying back past loans due to unexpected emergencies are both common reasons behind poor credit ratings. Once you have your life in better order and secure financial footing, it can still be difficult to live successfully with a bad credit score hanging over your head. A car title loan gives you the opportunity to work towards a new future. With regular payments, you can pay off your title loan along with boosting your credit score.

Keep your car

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Getting a car title loan doesn’t mean that you have to sign over your car. You are merely using your vehicle as collateral against the amount that you are borrowing. Once you are approved, you can continue to drive your vehicle. You only need to surrender your car if you fail to honor your repayment agreement. You can learn more about car title loans here.

The misconception that getting a title loan means that you will have to hand over your car to a lender is what keeps most people away from this type of secured loan. When you apply for a title loan you will have to provide a copy of your clear car title for the records, and sign a repayment contract stating that you will keep your payments regularly. Unless you forfeit on your repayments, your car stays in your hands. You may use it as you wish, and when the loan is paid off your contract will be fulfilled without any future risk.

Flexible repayment

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Traditional loans have stringent repayment rules that must be followed or can cost you extra interest or foreclosure. With a car title loan, lenders are more willing to work with you to create a realistic repayment system that works for you. Taking out a loan that involves a repayment schedule that will leave you strapped for cash for your other bills can leave you in a tough spot. Your title loan repayment schedule can be extended as needed or paid off early without penalty.

You could benefit from a title loan by rebuilding your credit, having money in your account in just one day, and keeping your car to use as you need it. If you require some fast cash or you have an unexpected expense, talk to your local title loan lender about getting your vehicle appraised.

About Jeanette Iglesias