27 Jun 2021   /   0 comments

Car Title Loans Pros and Cons

Car title loans

car title loans pros and consMany people think about the pros and cons of car title loans when considering taking one out. Here at TFC Title Loans, we try to minimize the effects of the cons as much as possible.

With over 25 years of experience in the title loan industry, we have worked tirelessly to improve the lending process for our valued customers.

Pros And Cons Of Title Loans

We have also made transparency and financial education a priority. We think title loans can be a great way to get the money you need quickly but we, also, believe our customers should examine every side of a situation before making a final decision which is why we fully lay out the pros and cons of title loans in this article for you.

Car Title Loans Pros and Cons

Many lending companies don’t think it is important to inform their customers of the car title loan’s pros and cons; however, we feel differently here at TFC Title Loans. Ever since we opened our doors in 1994, we have been passionate about friendly customer service.

We don’t merely try to improve our lending process but we also care immensely about helping you understand the car title loans’ pros and cons in their entirety.

So, if you wish to learn more about car title loans pros and cons then please continue reading. Or, if you’re wondering to yourself, how the process works?

If you decide, after reading about car title loan’s pros and cons, that it is the right option for you, then fill out our online application or give us a call today!


Pros of Title Loans

  • Simple Application Process: Unlike so many other lending options, car title loans require very little in the application process making it extremely simple to obtain the money that you need. We give you a call to follow up so you don’t even need to worry about the next step.
  • You Don’t Need a Job: It is required that you have proof of income but, at TFC Title Loans, that does not equate to proof of employment.
  •  Credit Check: Title loans are a type of secured loan which uses your vehicle as collateral. Because of this, there is a need for you to have a perfect credit score. Here at TFC Title Loans, we approve people with all different types of credit. We’re able to give you car title loans close to you in an instant. We do check your credit but only to make sure that you aren’t in the middle of credit counseling or active bankruptcy. Your score does not affect our decision.
  • Fast Money: All the factors listed above make it possible to get your money at lightning-fast speeds. If you qualify, you can usually receive your money as fast as the very next business day. This is one of the best benefits of title loans because many situations call for emergency response with quick cash.
  • Keep Driving Your Car: We don’t keep your car, we only put a lien on the title of your car. We know how important your mode of transportation is. You keep driving your car throughout the life of the loan without any inconvenience to you whatsoever.

Read more about what a title loan is.

Cons of Title Loans

  • High-Interest Rates: Since title loans don’t require a high credit score or verifiable employment, there is a higher risk for the lender that the borrower may not be able to repay the title loan.
  • Repossession Possible: If you were to default on your title loan, then there would be a possibility of repossession of your vehicle to pay the remainder of the title loan off. This unfortunate scenario is a possible disadvantage of a car title loan since the vehicle is your equity.
  • Short Payback Times: Some car title loan companies require that the loan is repaid in a shorter amount of time. Sometimes in just 30 days. This can be a major disadvantage if you cannot afford to pay it back so quickly. However, not all title loan companies have such strict guidelines.

TFC Title Loans Can Improve the Cons

  • Sliding Interest Scale: We have implemented a product to decrease the interest rates for our title loans. We offer a sliding scale interest rate so that each loan can be unique to the consumer’s situation.
  • Customer Service to Avoid Default: If you work with TFC Title Loans, we can decrease your chance of defaulting on your loan and decrease the possibility of repossession by working with you openly throughout the process. You can come to us if you have trouble making payments and we will work out a way to make it more manageable so you won’t need to worry.
  • Easy Online Application: Our online title loan application is easier than ever!
  • Longer Payment Terms: We have longer repayment terms for our loans and customize our loan terms for our customers’ unique financial situations.
  • No Prepayment Penalties: We charge absolutely no prepayment penalties so you can pay down on the interest and the principal at the same time. You can even pay off the loan early if you want to, so you can avoid building interest.

The Pros And Cons Of Title Loans Conclusion

We hope we have helped you with the pro and cons of title loans, as you can see if you need to get some fast money, using the equity that you have in your vehicle, is a great way to get it.

When you need fast money, you can leverage the equity of your car, make your monthly payments, and take care of what you need.

Contact us today, we are here to help you and we will answer any of the questions that you might have.

Read more about title loans.

Frequently Asked Questions
Are title loans good for emergency money?

Title loans are great for making money in a hurry because you get money quickly and keep your car. No company can match TFC Title Loans when it comes to low interest rate fast cash for any situation.

Do car title loans work the same as home title loans?

Yes, both title loans are given based on the value of the owned property.

Can I get a second car using a title loan?

Absolutely. The key is using the first car's title to put a down payment on your next vehicle. You can build a car collection quickly using this strategy. If you have any questions about which new or classic cars to buy, ask TFC Car Title Loans.

How Much Cash Can i Get?

    General Terms and Conditions.

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