If you are in need of a sudden influx of cash, you're likely looking at all of the options that are available to you. One way to do that is with an auto title loan. If you've been on the fence about using this type of loan, consider some of the advantages and disadvantages that you may not be aware of.
Title Loan Advantages
The biggest advantage of using an auto title loan is that it is going to give you the cash you need very quickly. That is because the process of getting an auto title loan requires that you own a car that has substantial value. As long as the title is in the clear, you can hand over the title and a spare key to get your money immediately. This will be much faster than any type of loan out there, which is why it is so popular.
Title loans are also available to everyone, even those with credit that is not so great. If you've found yourself denied loans by other lenders, know that it is likely that you can get a title loan with a poor credit history. This is true of any loan that requires substantial collateral, but your vehicle is likely the most expensive asset that you own aside from your home if you are a homeowner.
Title Loan Disadvantages
Of course, the biggest and most obvious disadvantage of using a title loan is that you can lose the vehicle that you used as collateral. This can not only put you in a tough financial situation, but the loss of your vehicle can significantly disrupt your life. While you do have the option to renew a title loan when the deadline comes up, it will add on to the total cost of the loan.
The other issue with title loans is that the interest rate can be high. This is often due to the title loan provider taking on a significant risk by giving loans to those with poor credit. Even though you are using your car as collateral, the vehicle still has to be located in order for it to be repossessed. Therefore, there is no guarantee on the title loan provider that they'll be able to repossess the vehicle if you default on the loan.
Reach out to a title loan company for more information on how they can get you the money that you need.