Many people think about car title loans pros and cons when considering taking out a loan. Here at TFC Title Loans, we try to minimize the effects of the cons as much as possible.
With our 25 years of experience in the title loan industry, we have worked tirelessly to improve the lending process for our valued customers.
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Pros And Cons 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 loans 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 work?
If you decide, after reading about car title loans 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 a 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 you 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 are.
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.
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.
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.
DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.
We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.
*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.
*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.
*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.
*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.
*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.
*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.
*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.
*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.
*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.