When making a decision on whether or not title loans are a good option for you or not, you may want to know the answer to the question “ are title loans bad ”. Here, at TFC Title Loans, we are well aware that there can be a lot of worry and uncertainty when it comes to Car Title Loans. They have risks and disadvantages just like any other lending option that is available in today’s economy. As a company, we are passionate about lender transparency and consumer education which is why we have been steadily expanding our website to include various resource pages on a wide range of topics. And this resource page will address the risks and disadvantages of title loans and the ways in which TFC Title Loans lessens those so these loans are helpful for the right customer.
There are some dangers that go along with Car Title Loans that are atypical of other kinds of more traditional loan, similar to those lent by banking institutions. Car Title Loans are secured loans rather than unsecured loans so that approval need not be dependent upon the borrower’s credit score; instead approval and amount is based on the collateral value found in your vehicle. Since these lenders are taking on borrowers with sub-prime credit scores, their risk in the lending venture is substantially higher. It is for this reason that they usually need to charge a higher interest rate on the loans.
Opening our doors in 1994, TFC Title Loans is the oldest title loan lender in the state of California. We are extremely passionate about helping those in need find financial assistance when and where they need it in the states of New Mexico, California, and Arizona.
If, after reading this, you are left with any questions regarding the disadvantages of car title loans then give us a call and we would be happy to answer them. However, if you are ready to get started with your title loan application then fill out the online form today!