Title loans online are a great option for individuals seeking to access quick funds. A title loan online can be handy if you have an unexpected medical expense or home and car repairs. These loans are perfect if you own a car or another automobile outright. You only need to put your Vehicle’s value against the collateral and keep your car as you repay the loan.
However, before applying for a loan online, understanding the pros and cons of using this service can help you make an informed decision. Here are some of the benefits and drawbacks of online title loans.
Pros Title Loan Online
Your Credit Score is Not a Critical Factor
Almost every lender will check your credit score to determine whether you can repay the loan. Conventional lenders will turn you down or charge you exorbitant interest if you have poor credit. Fortunately, most online title loan lenders do not focus on your credit history or credit score. Additionally, you don’t need a guarantor because your car is a great assurance for the loan.
Even if a lender pulls your credit report, a bad credit score is unlikely to prevent you from being approved. You only need a car of value and a steady source of income. Online title loans will give you many options when you need cash but don’t have impressive credit.
Quick Loan Processing Time
Banks can take a long time to process your loan. You have to undergo a lengthy application process and may have to wait for weeks to get the funds you need. On the flip side, you can have your money within a business day when you take out a title loan online.
Car title loans are helpful if you need funds in a hurry. They are an excellent option for individuals dealing with cash flow problems or unexpected costs.
Straightforward Application Process
You don’t have to provide much documentation to acquire a title loan online. You only have to provide your Vehicle’s title, a government-issued ID, and sometimes, proof of insurance. When you fill out an application form and provide the required document, you will get a loan approval within a few minutes.
You Can Keep Your Vehicle
The lender does not withhold or confiscate your vehicle if you opt to take out a title loan online The vehicle is only used as collateral, and you will be free to drive or use it with full authority.
Convenient Payment Schemes
Most online title loan lenders have convenient payback arrangements in several installments to allow you to repay the loan on time without inconvenience.
Cons Title Loan Online
Shorter Repayment Period
Title loans have an average repayment period of between 15 to 30 days. Most online loan lenders offer loans that cost a few thousand dollars, meaning that even with interest rates, they are easy to pay.
However, borrowers who cannot pay within the short repayment period will have a difficult time. Like other financing options, you do not want to default on your online title loan. The aim is not to default, so it is essential to borrow only what you can afford to pay within a short timeline.
One common drawback of online car title loans is their high-interest rates. Not all online title loan lenders will offer you a good deal to relieve your financial obligations. Some will charge exorbitant rates, making it very challenging to repay the loan. Even if you manage to pay the loan without hardships, you will likely pay more than you should.
You need to explore your options and understand the terms of your loan agreement to ensure you get the best out of the online title loan. You will likely have several title loan lenders near you and numerous online. Checking reviews before taking out an online car loan is always advisable.
You Need to Own the Vehicle Outright
If you have not completed paying off your car loan, you may not be able to get an online title loan. The online title loan lending company will need a lien-free title to determine the value of your vehicle and the amount of funding you should receive.
Get the Funds You Need Today
Like other loans, you need to understand the dynamics of online title loans to ensure you make the right decision. The process of applying for a loan is pretty simple. If you are unsure whether you qualify for a loan, request a quote online, and a loan specialist will walk you through the process.
The experts at Florida Title are ready to offer a solution tailored to your needs. Call us at (850) 458-2274 to discover more about what is available and begin applying for a loan as soon as possible.