An auto title loan is one of the most preferred ways to get access to quick cash.
This short-term loan uses the title of your car or any other vehicle as collateral. For the loan to work, the title of the vehicle must be under your name and you can’t have any other existing loan on the car. In exchange for the cash loan, your lender gets to keep your title as well as a copy of your car keys until you have made your final payments.
Compared with other types of loan, auto title loans offer convenient repayment options, fast approval, and lower interest rates, among other advantages. Let’s take a closer look at why a car title loan can be your best option.
You Get Quick Cash Through an Easy Process
For individuals who are pressed for time, car title loans come in handy. In many instances, borrowers do not need to visit a physical store to complete the application process or submit the necessary forms. You can complete the form in minutes and then submit it online. Some companies even approve the loan the same day, so you don’t have to wait long to receive your cash.
Your Credit Doesn’t Matter
When applying for an auto title loan, you don’t need to scramble to rebuild your credit. Car title loans are generally known as no-credit-check loans. Many lenders would not ask to see your line of credit; a car and a steady source of income would suffice.
You May Qualify Regardless of Your Vehicle
You may qualify for a loan regardless of the type of vehicle you own. Your car, a truck, an SUV, a motorcycle, or an RV can be used. Some lenders even offer cash loans for snowmobiles.
You Get to Keep Your Car
As lenders only use the title, not the unit itself, as collateral, you can still drive your car even if you haven’t paid your loan amount in full. Once you make your final payment, your lender will return the title to you. On the contrary, if you’re unable to pay your loan back, your lender will keep your auto title.
You Pay Lower Interest Rates
Compared with cash loans, auto title loans have comparably lower interest rates. This is because lenders use your vehicles as collateral, which provides them with an extra layer of protection and allows them to charge lower interest rates.
You Enjoy Convenient Financing
Given that you have applied for your loan with the right company, repayment for car title loans should be quick and easy. The right lender should be able to provide you with a payment schedule so that you know your due payment dates.
When in need of fast cash, turn to VIP Finance of Texas. We are the first auto title lender in the DFW Metroplex and has remained locally-owned and operated since we first opened our doors in 1989. As a relatively small lending company, we can offer our policies on more flexible terms as well as keep our customer service warm and personalized.
VIP Finance of Texas is a registered lender with the state. Apply for a loan today!