A lot of consumers ask the question ‘ are title loans worth it?’ Here, at TFC Title Loans, we want to help you understand every piece of the process so you can make the most informed decision possible. Below, we will outline for you why title loans might be necessary for you, the risks that make people nervous about title loans, and the benefits of title loans with TFC Title Loans.
If you have a less-than-perfect credit score, then that might be a reason that a title loan is necessary for getting the emergency funding that you need. Unlike most traditional banking institutions, Car Title Loans do not require that you have a spotless credit score to apply or qualify. We base the amount and approval of the loan on the current street value of your car and your ability to repay the loan in monthly installments.
We are the oldest title loan lender in California and we have lasted so long because we make our customers our number one priority. We believe that there is more to a person then just a number and we are passionate about helping those in need who have been unable to find help elsewhere.
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.
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.
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.
If you do end up deciding that title loans are well worth it and the right choice for you, you may still feel unsure which title loan lender you should work with. We want to prove to you why we are the best lender to turn to when it comes to title loans by explaining all the amazing benefits that we can provide for you if you make the decision to work with us.
We think title loans are worth it if you are in a situation that requires emergency funding but if you are left with any hesitations or questions then give us a call. If you have decided that you would like to get a title loan with TFC Title Loans, then fill out our online application today!