October 08, 2019A car title loan is a type of loan that can be obtained by using the title of your car. Car title loans are popular with consumers because they are easy for just about anyone to get. In fact, a car title loan is one of the easiest, fastest loans you can get. While car title loans help countless consumers get the money they need every year, there are some myths spread about car title loans that are meant to shine a bad light on them. The truth is, car title loans are not bad, and without them, many consumers would suffer the consequences of a financial emergency with no alternatives available.
Why Not a Bank or Credit Union?It's important to understand that banks, credit unions, and other types of traditional lenders may not be an option for everyone. Many people recommend traditional lending institutions because they say the interest rates are lower. According to Credit Karma, unsecured loans (the type many consumers opt for when they have a financial crisis) often have higher interest rates because there is no collateral used to secure the loans. Those rates can vary from one bank to another, depending upon your credit score. In fact, many consumers can't even qualify for an unsecured loan through a bank. In the case you can qualify for a loan through a bank or credit union, it can often take some time to get the loan. In situations where you need money fast, waiting for the loan process might not be an option for you. This is one of the big reasons bank loans might not work for some consumers. There's a lot of paperwork involved and time spent waiting to see if you qualify.
A Couple of Myths About Car Title LoansOutrageous interest rates are one of the biggest myths about car title loans. This isn't always the case. Many car title loans, including TitleSmart, offer competitive interest rates, particularly for anyone who needs to get a fast loan. Another myth is that car title loan companies are just waiting for you to miss a payment because they want to swoop in and take your car away from you. This isn't true either. That isn't how car title loan companies make money. They are in the business of issuing car title loans, not taking cars so they can sell them. At TitleSmart, we are interested in helping consumers get the money they need when they need it. We don't want your car. The car title is simply a means by which you can obtain a loan through us.
How Does a Car Title Loan Work?Unlike banks and credit unions, car title loans are pretty straightforward. At TitleSmart, we make it quick and easy for you to get the funds you need in an emergency. All we need is the title of your car (free of any liens), a valid I.D., proof of residence, and proof of a viable source of regular income. You don't even need to be employed. You can still get a car title loan even if you are on disability. Our process is simple. We can assess your vehicle on the spot to determine the amount of the loan you qualify for and issue you a car title loan the same day. In fact, we can have the money in your hands often within half an hour. It's that easy.