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4 Things to Know About Short-Term Loans
Short-term loans like title loans are often a great option if you’re in need of a quick bit of cash.
00:28 14 February 2023
Short-term loans like title loans are often a great option if you’re in need of a quick bit of cash, and don’t want to go to the bank where they’re going to ask you to fill out a ton of paperwork. Most of the time, it takes a lot longer to get approved by a bank than a title loan, which is why they’re such a great option if you don’t have a lot of time.
There are a few unique aspects to this type of short-term loan, so let’s talk about it. So, what is a title loan? Here are four things you need to know about them.
1. They Are Easily Accessible
Short-term loan options like this are becoming more and more popular these days because they are easily accessible. This is because they do not require you to fill out lots of forms and paperwork to get approved. While you might be required to show things like your ID and the title of your car, once this is done, the waiting process to be approved isn't long and arduous.
One of the best parts of a short-term loan like this is that most of the time, you can apply for them online. With some lenders, it takes just minutes to get approved.
2. Don’t Worry About Your Credit Score
Worried about how your credit score is going to affect whether you get that loan approved or not? Don’t be. The vast majority of title loan lenders do not need to look at your credit score to approve you for a loan.
This is because your credit score is irrelevant – the main thing that they’re interested in is the title of your car. This makes sense because you’re taking the loan out against the value of your car, so as long as the car is in your name, there’s no need for them to see anything else.
3. They’re Confidential
Most lenders in your area will make sure that the entire transaction is discreet and confidential, which, of course, is beneficial to you if you wish to keep the entire thing private. This means that nobody is going to have access to your personal finances throughout the entire process.
What’s more, the loan company itself is under strict regulations to keep your personal information safe and secure within their database.
4. You Can Keep Your Car
When we say that this is a loan that is taken out against the value of your car, you may be tempted to think that you have to give up your vehicle for the time that you take the loan out for.
However, the opposite is true. Despite the fact that your car is the collateral here, you still get to use it as much as you need. However, the title now belongs to the lender as long as you have the loan out, but most lenders offer flexible repayment options, so you don't have to worry about repossession.
If you’re in a bit of a bind right now and need to make ends meet, consider a title loan as a quick, temporary solution to get you through.