LOS ANGELES, June 06, 2022 (GLOBE NEWSWIRE) — Title loans can provide borrowers with quick funds so they can cover their expenses immediately, whether they need to pay a medical bill or buy groceries. These loans often come with simple applications and can bring borrowers cash the same day they apply. Here’s how title loans work and some of the benefits they offer so borrowers can decide if this loan option suits their needs.
How do title loans work?
A title loan is a secured loan where the borrower can use their car title as collateral. With these loans, borrowers can get a loan amount based on the estimated value of their car. When a borrower is approved for a title loan, the lender gives them money and temporarily retains their title. The borrower can keep driving their car while repaying the loan.
Remember that if the lender defaults on the loan, the lender can repossess the borrower’s car to make up for the loss. Borrowers should therefore make sure before applying that they can repay this loan.
Benefits of Title Loans
Here are some of the key benefits of title loans:
Easy application process
Title loans come with quick and easy applications that borrowers can fill out in just minutes in store or online from the comfort of their own home. They only need to provide some personal and financial details, such as their car’s title, proof of income, and a government-issued ID.
Once the borrower submits an application, the approval process is very quick. First, the lender will do an appraisal of their car to determine how much it’s worth. Then they offer the borrower a loan amount worth a percentage of the vehicle’s value. If the borrower accepts the loan offer, they can get the money they need on the same day or within 24 hours.
Good credit not required
Many title loans have less stringent credit requirements, so borrowers do not need good credit to be eligible for credit. Many lenders consider factors such as income, employment history, and the value of their car in addition to the borrower’s creditworthiness when deciding whether to approve. This means borrowers with poor or fair credit ratings can still be approved.
Larger loan amounts
Because title loans are secured by the borrower’s car title, borrowers can often obtain a larger loan amount than with unsecured loans. Title lenders typically offer a loan amount worth 25 to 50% of the vehicle’s value.
Get a title loan today
Advance America offers title loans that are a great option for borrowers who need cash fast. With these loans, borrowers can fill out a simple online or in-store application and be quickly approved, depending on the state. Better yet, they don’t need good credit to qualify. Borrowers can visit AdvanceAmerica.net to learn more about title loans and begin the loan application process today.
Note: The information provided in this article is for informational purposes only. Ask your financial advisor about your financial situation.
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