At TFC Title Loans, we are aware that many people wonder “ are title loans safe?” and we recognize that the answer can be complicated as title loans, like any other lending option, have both pros and cons. We want to describe, in detail, what each of the pros and cons of title loans are so that we can explain why we believe that title loans are indeed safe when obtained and approved properly. We believe title loans can be a great way for people who have less-than-perfect credit scores to get the funding they need in a hurry without all the fuss that comes with traditional bank loans. However, we also understand that title loans may not be the best option for other people so we would like to inform our potential customers as much as possible so that they can make the right decision and assure those who title loans are right for that they are perfectly safe, especially when working with a company like TFC Title Loans.
There are many lenders out there that do not find it important to be an educational resource for their customers. But TFC Title Loans has placed a high priority on consumer education and lender transparency since we first opened our doors in 1994 as California’s first title loan lender. Since then we have been able to perfect the lending process so the risks are minimized and the benefits are greater. Recently, we have been putting our belief in consumer education into practice by significantly expanding our current website to include informative resource articles like this one. This particular resource article will address whether title loans are safe by discussing their benefits and their risks.
If you are interested in finding out more, then please continue reading. And if you are interested in receiving a title loan from TFC Title Loans then go straight to our homepage where you will find an easy online application. Filling it out will only take five minutes out of your day and you will be one step closer to obtaining the funding that you need.
Are Title Loans Safe?
Risks of Title Loans
- Higher Interest Rates: Since there is a higher risk for the lender when giving out a loan to a borrower with a less-than-perfect credit score, Car Title Loans tend to have higher interest rates to make up for the increased risk. This means you could end up paying more back than you would with a typical bank loan.
- Repossession Possible: Car Title Loans use your car as collateral for the loan so if the loan was to be defaulted on, then the lender would have no choice but to repossess your car in order to get the money back that they lent out. If this must be done, lenders sell the car at auction and end up getting less than they would have if the borrower had not defaulted, so this is undesirable for both parties.
- Shorter Payback Times: Many Car Title Loans have shorter payback schedules than the typical bank loan. There are some lenders that require the loan be paid back in just a few months which can make the payments astronomical.
TFC Title Loans Minimizes the Risks
- Sliding Interest Scale: We have a product which can decrease the higher interest rates common to title loans through sliding scale interest rates so each loan can be customized to the customer’s unique situation.
- Customer Support to Avoid Default: If you are struggling to make payments, all you need to do is reach out to our customer support team here, at TFC Title Loans, and we will figure out a way to help you through the process without your loan defaulting.
- Longer Payback Terms: We customize our loan terms for each customer with a payback timeline between 24 and 36 months so that the monthly payments are affordable.
- No Prepayment Penalties: We charge absolutely no prepayment penalties so you can pay back the loan as early as you like. If you decide to pay it back early, then you can avoid building interest.
Benefits of Title Loans
- Easy Application: Our online application is so simple that it will only take you five minutes to complete. We don’t want to waste hours of your day like traditional bank loan applications do. We know your time is precious so we make things as simple as possible.
- No Credit Check: We base the approval and amount of your loan solely on the equity within your vehicle and your ability to pay it back on time. We don’t approve or reject you based on your credit score. If we do check your credit, it is only to ensure that you are not in active bankruptcy or currently undergoing credit counseling.
- Quick Funding: We can get you your money as fast one business day after approval. You can’t get much faster than that.
- Keep Driving Your Car: Even though your car is used as the secured collateral for the loan, we do not deprive you of your mode of transportation. You get to keep driving your car as you usually would throughout the life of the loan.