If you are in a financial emergency where you need funding and fast, then you may be considering getting an auto title loan. But perhaps you are hesitating because you have heard people say they can have certain pitfalls. So, you might be wondering how bad are title loans really. Here, at TFC Title Loans, we can give you all the details about the possible advantages and disadvantages of Car Title Loans as we have been in the alternative lending industry for nearly 25 years. With all of that experience, we believe it is our responsibility to share all of the knowledge we have gained from that experience with our customers. We do this because we are strong believers in consumer education and lender transparency. Recently we have been working hard to expand our website to include various resource pages that answer questions and address concerns about Car Title Loans. This particular resource article will be address the risks and disadvantages of title loans and how we, at TFC, try our best to minimize those risks and maximize the advantages.
All lending options have risks that go along with them. No matter how traditional the loan, there will always be risks associated with them. But, of course, there are some other risks that go along with title loans that are atypical of other lending options. This is because title loans are secured loans rather than unsecured loans, meaning that your approval is based on the collateral trade-in value in your vehicle rather than your credit score. You can be approved for Car Title Loans regardless of your credit score but that means the lender will be taking on more risk by lending to individuals with sub-prime credit scores. Since the risk is higher there will be higher interest rates on the loans.
Ever since we first opened our doors in 1994, we have helped thousands of customers through their financial worries by providing Car Title Loans at amazingly competitive rates. We have locations all across the states of California, Arizona, and New Mexico. If you would like to learn more about title loans, then keep reading.