Getting a title loan might sound a bit scary, but the reality of getting a title loan may surprise you. There are many benefits to getting a title loan, and they are very easy to apply for and pay off. There is no credit check, you get to keep your vehicle, the payments are affordable, and you can get some equity out of your vehicle. The only downside is high-interest rates, but this comes because your payments will be made more affordable over longer terms.
Let’s examine the 5 reasons why choosing a car title loan can be a good idea
1 – No credit check
- What is great about getting a car title loan is there are a lot to choose from around the Calgary area, and convenience is something that is valued in this day and age. You even have the option of applying online. To apply for a no credit check car title loan, you must not have anything owing on your vehicle, and you must be the owner of your vehicle’s title.
2 – You keep your vehicle
- When you hear of a “car title loan”, it may be intimidating to hear. Yes, you must be able to forfeit your vehicle as collateral if you do not pay off your loan. However, if you can pay back the loan within the terms, there is nothing to worry about. We will dive deeper into this later, but the terms are very affordable.
3 – Longer terms
- What is nice about car title loan terms is that you can take your time in paying off the loan. Many car title terms are offered over more extended periods to ensure you can afford the payment for the duration of the loan. This can come in handy when you need cash in a bind and know you can pay it back but may not have the credit to apply with banking and credit lenders.
4 – Good terms
- Make sure you are getting good terms. Interest is normally upwards of 13% with most car title loans. Check around and see who is offering good rates. Just as important as the interest rates are for you to have the option to pay the loan off early. If you want to avoid some expense that comes with paying the interest rates, do your best to pay the loan off early.
5 – Your vehicle is an asset
- If you have ever heard that your vehicle is immediately worth one-third less when you drive off the lot, you’re not hearing things… it’s true. You typically would just drive your vehicle until you either sell it, trade it in or keep it long-term. If you plan to do any of these, your vehicle can be an asset you can use to leverage some quick cash. You could leverage fast cash for getting out of a hard financial bind, investment opportunity, and down payment towards a house or vehicle.
There are a lot of things you can do with the money, and if you have a source of income to pay back a car title loan, you will be able to have peace of mind knowing that you got the cash when you needed it and you still keep your vehicle during and after you pay the loan off.