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20 Mar 2019   /   0 comments

Car Title Loans Pros and Cons

Paul

Many people think about car title loans pros and cons when considering taking out a loan. Here at TFC Title Loans, we try to minimize the effects of the cons as much as possible. With our 25 years of experience in the title loan industry, we have worked tirelessly to improve the lending process for our valued customers. We have also made transparency and financial education a priority. We think title loans can be a great way to get the money you need quickly but we, also, believe our customers should examine every side of a situation before making a final decision which is why we fully lay out the pros and cons of title loans in this article for you.

Car Title Loans Pros and Cons

Many lending companies don’t think it is important to inform their customers of the car title loans pros and cons; however, we feel differently here at TFC Title Loans. Ever since we opened our doors in 1994, we have been passionate about friendly customer service. We don’t merely try to improve our lending process but we also care immensely about helping you understand the car title loans pros and cons in their entirety. So, if you wish to learn more about car title loans pros and cons then please continue reading. If you decide, after reading about car title loans pros and cons, that it is the right option for you, then fill out our online application or give us a call today!

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Pros of Title Loans

 

  • Simple Application Process: Unlike so many other lending options, car title loans require very little in the application process making it extremely simple to obtain the money that you need. We give you a call to follow up so you don’t even need to worry about the next step.
  • You Don’t Need a Job: It is required that you have a proof of income but, at TFC Title Loans, that does not equate to proof of employment.
  • No Credit Check: Title loans are a type of secured loan which uses your vehicle as collateral. Because of this, there is no need for you to have a perfect credit score. Here at TFC Title Loans, we approve people with all different types of credit. We do check your credit but only to make sure that you aren’t in the middle of credit counseling or active bankruptcy. Your score does not affect our decision.
  • Fast Money: All the factors listed above make it possible to get you your money at lightning fast speeds. In the event that you qualify, you can usually receive your money as fast as the very next business day. This is one of the best benefits of title loans because many situations call for emergency response with quick cash.
  • Keep Driving Your Car: We don’t actually keep your car, we only put a lien on the title of your car. We know how important your mode of transportation is. You keep driving your car throughout the life of the loan without any inconvenience to you whatsoever.

 

Cons of Title Loans

 

  • High-Interest Rates: Since title loans don’t require a high credit score or verifiable employment, there is a higher risk for the lender that the borrower may not be able to repay the loan.
  • Repossession Possible: If you were to default on your loan, then there would be a possibility of repossession of your vehicle in order to pay the remainder of the loan off. This unfortunate scenario is a possible disadvantage of a car title loan since the vehicle is your collateral.
  • Short Payback Times: Some car title loan companies require that the loan is repaid in a shorter amount of time. Sometimes in just a period of 30 days. This can be a major disadvantage if you cannot afford to pay it back so quickly. However, not all title loan companies have such strict guidelines.

 

TFC Title Loans Can Improve the Cons

  • Sliding Interest Scale: We have implemented a product to decrease the interest rates for our title loans. We offer a sliding scale interest rate so that each loan can be unique to the consumer’s situation.
  • Customer Service to Avoid Default: If you work with TFC Title Loans, we can decrease your chance of defaulting on your loan and decrease the possibility of repossession by working with you openly throughout the process. You can come to us if you have trouble making payments and we will work out a way to make it more manageable so you won’t need to worry.
  • Longer Payment Terms: We have longer repayment terms for our loans and customize our loan terms for our customers’ unique financial situations.
  • No Prepayment Penalties: We charge absolutely no prepayment penalties so you can pay down on the interest and the principal at the same time. You can even pay off the loan early if you want to, so you can avoid building interest.

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