What You Need to Know about Cash Title Loans
When you need cash quickly, a short-term loan can seem like an attractive option. In most cases, you don’t need to fill out onerous application forms and your credit file won’t negatively impact the decision-making process. But, are cash title loans really such a great idea?
There are a million and one reasons why you might need money. Perhaps you are between jobs and your landlord is hassling you for the rent or your mom just reminded you that you forgot your sister’s birthday and now you need to make it up to her with a nice gift. You may even be desperate to pop the question to a significant lady in your life, but you can’t afford a nice sparkly ring. Whatever the cause of your woes, a cash title loan could help you out in the short term.
Cash title loans are short-term loans. Unlike regular personal loans, the idea is that you borrow money for a few days, a week or a month, and then repay it – with interest. You can’t borrow tens of thousands of dollars on a cash title loan, but you can borrow small amounts.
Unlike a regular unsecured loan, cash title loans are secured on property, typically a vehicle, but other assets of value may also be used to secure a cash title loan; check with the lender to see what asset they require to lend you money. As long as you own the asset – in the case of a vehicle, you need to own the vehicle’s title – a lender will consider your application.
What are the Benefits of a Cash Title Loan?
Cash title loans are very useful if you need money quickly. There are few requirements other than ownership of the asset. Lenders are usually happy to hand over money because they know they will always get their cash back, even if the borrower defaults on the loan repayments. People with poor credit will still qualify for a cash title loan because lending criteria are less stringent than other types of loan, so if you are struggling to borrow money elsewhere, a cash title loan could help you out of a tricky spot.
The Downsides of a Cash Title Loan
The main disadvantage of a cash title loan is that interest rates are less competitive. Expect to pay more if you borrow money this way, but if you need money fast and your options for raising cash are limited, this is a small price to pay.
Look for a Reputable Lender
Not all lenders in this highly competitive marketplace are reputable. Some lend money to people who are in a precarious financial position and then add on extra interest and costs when they struggle to make their repayments. To avoid this from happening to you, look for a reputable lender. For example, if you are searching for title loans in Florida, do a bit of research online before you fill out a loan application.
Cash title loans are a valuable tool if you need money quickly, but always ask friends and family to help you out first, as it will cost you less in interest.