Banks and credit lenders are coming up with different kinds of loan products that are proving to be convenient for borrowers. If you need money urgently, there are a number of options that you can consider. One of the most popular choices available to you is a title loan. These types of loans have become incredibly common over the past few years, and continue to rise in popularity. Compared with other options such as standard unsecured personal loans, these are a much more accessible choice. Here are five reasons why title loans are better than unsecured loans.
1. You Don’t Have to Worry About Bad Credit
If you have bad credit, it could make it incredibly difficult for you to get approval for an unsecured loan. It doesn’t matter whether you need the money for your personal use or if you want it to start a business, lenders and banks simply don’t consider people with bad credit. On the other hand, you don’t need to worry about your credit affecting your chances of a title loan. These loans are secured by the title of your car, thus, making it easy for you to get a loan, regardless of the mistakes you might have made in the past.
2. They Have Quick Approvals
Title loans can be approved within a couple of business days. In many cases, applicants even get approval on the same day. You will get instant cash credited into your bank account without any hassle whatsoever. It’s easily one of the best advantages that you get for taking out an auto title loan, because you never have to worry about waiting for several days to get an approval. Considering the fact that most people apply loans out of strict necessity, this is a great option.
3. You Only Need a Vehicle to Qualify
There are no lengthy requirements when you apply for a title loan. All you need is a vehicle to qualify, and of course, it should be in your name. The title of the vehicle will be used by the company as collateral while granting you the loan, thus, making it easy for you to send in an application.
4. You Still Get to Drive
A common misconception amongst most people is that these loans require you to give your car to the lender, and you can’t get it back unless you have paid the loan amount back. Obviously, that’s not true at all. You still get to drive your car without any issues; just make sure you keep paying the amount back on time!
5. They Can Be a Good Choice
Many people realize that the title loan is a better option as compared to other options, especially unsecured loans. There aren’t as many hoops to jump through, and the application process is as simple as can be, allowing you to get the loan quickly. It’s definitely a better choice than unsecured loans, so you should apply for one if you need the money!