Whether or not online title loans are the right option for you depends on what you’re looking for in a loan. Ask yourself a few questions:
• Do I need a short term loan for a quick boost of cash, or a more long term solution?
• What’s my credit score like? What kind of loans do I qualify for?
• What’s my time frame like? When do I need funds by? When could I pay off my loan by?
Most borrowers who are a good fit for online auto title loans have bad credit, need money as quickly as possible as a short term loan, and own their car outright. If this sounds like you, then you might be a candidate for fast cash, no credit car title loan.
Who Qualifies for an Online Auto Title Loan?
Everyone! That’s really the purpose of title loans. They’re designed to be functional and practical for borrowers of all financial backgrounds, and available to anyone who needs an immediate source of funds; no matter what their credit score is like.
There are three major requirements that a title borrower needs to have in order to get approved for a quick cash loan:
• They need to be at least 18
• They need to have some source of income
• They need to own their car free-and-clear
If you meet those three requirements, then you’re pretty much good to go for an online car title loan. One of the most popular draws for title loans is their flexible in helping borrowers of every kind… not just a select few whose credit can afford it.
How Does a Car Title Loan Work?
It’s pretty basic. Instead of leaning on your credit score, a title loan relies on the equity of your car to finance your loan. This sidesteps the need for a credit check, because you’re using the equity as collateral instead.
So once you’ve found the perfect auto title loan provider, you give them the title to your car (not the car itself… just the slip of paper). In exchange, you get the equivalent of the value in cash. Once you’ve paid off the loan, they return the title to you. That’s it!
Because online title loans are short term immediate cash solutions, they have a higher interest rate than some kinds of loans. But the counter-drawback to longer term loans is that the repayment period is drawn out over years.
If you’re looking for a fast source of money that you’re able to pay back within a few months, then a car title loan is the perfect fit for you. However, if you need a loan for something like paying off your mortgage, then you’d want a longer term loan than a title loan. It all depends on what you’re wanting to achieve with your loan.
Making the Choice
It’s your money, it’s your future, and it’s up to you to decide if title loans are worth it based on your individual situation! Before you settle on any one auto title loan provider, do plenty of research and comparison shopping to find the lowest interest rate possible. Make sure you understand the terms and stay on top of your payments. With a little know-how, choosing an online car title loan can be a fantastic source of fast cash without credit when you need it!