Things to Consider When Applying for a Short-Term Loan
If you’re like most Americans, then at some point in your life you’ve been in a situation where you’ve required an influx of cash on short notice. Perhaps you needed some emergency dental work done or a major appliance in your household went out. These types of problems seem to happen when you least expect them, so it’s always a good idea to know what your options are when it comes to getting a short-term loan. One of the most popular options are car title loans. There are certain advantages that they hold over traditional banks, however, they are not without their drawbacks. The following is our pros and cons list to keep in mind when applying for a car title loan.
Pro: Get Cash Quickly with No Credit Check
The core benefit of a car title loan is that you get your cash quickly – sometimes, in a little as 20 minutes. Unlike a traditional bank, there’s no credit check to go through and only a moderate amount of paperwork that has to be filed. This drastically cuts down on the turnaround time of getting your cash, which is why this has become such a popular option for individuals needing money immediately for emergencies.
Con: Your Car Title Must Be Clean and Clear
Although car title loans don’t require a credit check, you do need to have a clean and clear car title in order to qualify. This means that if you are still making payments or if you have any liens on the vehicle, you will not qualify for a car title loan.
Pro: Car Title Loan Money is Flexible
Getting your car title loan cash is a quick and easy process, but another benefit is that you’re able to spend it on whatever you want. Even though car title loans have an association with only being used for emergency purposes, the truth is that you can use the money for anything your life requires. That could be an upcoming tax bill or even your weekly groceries. The beauty of car title loan cash is you’re not boxed in to spend it only on certain things.
Con: Potentially High Interest Rates and Short Payback Schedules
Just like any lender, a car title loan business wants to make sure that they get paid back from the people they’re lending to, and that it’s profitable for their business. This means the borrower will be paying interest as part of their repayment plan, however, the amount will be different from lender to lender. That’s why it’s important for the borrower to always do their due diligence and check the amount of interest being charged, the payment amount, and the payment schedule. You do not want to borrow cash that you realistically can’t pay back.
Pro: You Maintain Your Loan Collateral
By now you know that you can get your cash quickly and that all it takes is a clean and clear car title. The other major benefit of a car title loan is that you retain possession of your collateral. Even though the money you’re borrowing is based upon your car, you get to drive away in the same car that you arrived in.
Con: Defaulting on the Loan Comes with Big Penalties
Borrowing money based upon your car’s title means that your vehicle is on the line in the event that you default. Being late on a payment will result in late fees or other penalties, which should be spelled out in the contract’s verbiage. Completely defaulting can result in your car being repossessed. Make sure to borrow and pay back responsibly to avoid this issue.
Finding a Car Title Loan Lender
Due to the surge of popularity in car title loans, finding a lender in your local area should be easy. Remember, all you need is a clean and clear title and a valid driver’s license. Once you’ve presented these items to the lender and filled out some basic paperwork, you should be approved and out the door with the cash you need in less than 30 minutes.
Kansas City title loans can be acquired throughout all of the greater metropolitan area. Get your documentation together and apply today to get cash now.