Need to meet payroll for the weekend? A little short on a bill you have to pay on time? If so, the snail pace of a traditional bank loan just isn’t going to cut it. Things happen. Sometimes those things lead to needing money in a pinch. If you need money fast, a short-term loan is the answer to your problem.
There are a variety of different short-term loan options available. One that is overlooked is a title loan, which is a loan taken out against your car’s title. I suspect I would see a rise in the number of title loans in houston tx if everyone had the information that I’m about to give. Here are some of the most important benefits of a title loan.
1. Credit Check – Most loan companies will run your credit to determine your eligibility. With a title loan, this is not necessary because of the collateral you are providing in the deal. If you think your credit score is going to prevent you from getting the emergency cash you need, explore the possibility of a title loan.
2. Borrow What You Want – You are borrowing against the value of your vehicle, but you don’t have to borrow the full amount. Smart consumers choose to take the smallest amount possible in their loan agreement, making it much simpler to pay it off on time. It is important to note that the payment schedule on title loans varies. Be sure you fully understand the repayment terms before signing an agreement.
3. You Can Still Drive – You don’t have to give up your car. Your automobile is simply collateral. This means it will only be taken away if you become delinquent in your payments. For this reason, you should only take out a title loan for an amount that you are certain you can pay off on time.
4. Lower Interest Rates – As far as short-term loans go, title loans come with a favorable interest rate. This is the primary reason so many borrowers choose to take out a title loan versus a more common payday loan. The payment terms and overall savings make title loans a favorable choice.
There is a chance you haven’t even heard of a title loan until today. Now you know that it is a low-risk short-term loan option. On top of that, you will save money compared to a payday loan. If you need emergency money in a pinch, a title loan may be your saving grace.