What Kind of Person Could Need a Title Loan?

A lot of people think that title loans serve only one purpose: making the poor poorer. This is because loans are provided to anyone who owns a car very quickly, without any type of credit check. However, there is more to this than having poor credit or being on a low income. Yes, those are people who often apply for these loans, but even those with good jobs, a regular income, and an excellent credit score apply for them. That is because, so long as you own your own car, you can have money in your account in minutes.


Understanding Title Loans

Car title loans are short term financial options and they are designed for those who need money in a hurry. Perhaps they have an unexpected medical bill, a repair bill, or a funeral to pay for. Regardless of how much you earn a month, if you have an unexpected bill of several hundred dollars, you are likely to struggle to come up with the money on the spot. After all, we all live at least within our means, if not above is. In these types of emergency, you will need some extra money, and you need it now, not in the next two months that it can take a traditional lender to decide whether or not you are able to get a loan.

Car title lenders don’t care about your FICO score. This is something that sets them apart from most other lenders, who put a black mark against you the minute you so much as miss a single payment. Instead, these lenders secure their loan against your vehicle’s pink slip. If you don’t pay within the agreed time, which is usually 30 days, the car is theirs. This is serious, however, so do make sure that you can actually pay the loan back, or you will lose your vehicle.

Car title loans are there for people who need a cash injection very quickly. As short term loans, they have to be paid off very quickly, with most terms being 30 days. You may be able to make two payments in one month to spread the cost a little. It is nice to know that emergency cash is available if an unexpected bill presents itself just a few days or week before the next payday. You can apply within minutes, receive a decision almost instantly, and see the money in your bank within just a few hours as well. That literally means that if you have a financial emergency today, you can resolve it today as well.

So who are these loans for? Essentially for anybody who owns their own car, has regular income, and needs money very quickly. It has nothing to do with how you have managed your finances so far, or whether or not you have a good credit score. This is a nonjudgmental type of lending facility in which everybody wins: you get the money you need, and the lender makes a profit.