Every single financial decision that we make in our lives has both pros and cons which go along with it. And if you are considering the option of a title loan for your current financial crisis, you may be wondering exactly what are the pros and cons of title loans.
What Are the Pros and Cons of Title Loans?
We plan to use this informative article to answer that exact question for you along with how we, TFC Title Loans, try our hardest to minimize the risks/cons associated with title loans. We will answer if title loans are bad or good.
Over the past 25 years, we have been consistently passionate about making our customers our number one priority which has led us to spend a substantial amount of time and resources on consumer education and lender transparency.
As the oldest title loan lender in California, we strongly believe that title loans can be an amazing way to obtain emergency funding but we also acknowledge that our customers ought to fully understand every aspect before making an important financial decision.
So many title loan lenders don’t believe that it is their responsibility to inform their customers on every aspect of the commitment they are making, especially the negative aspects.
Ever since we first opened our doors in 1994, we have been constantly perfecting our lending process and sharing that ever-evolving process with our customers every step along the way.
If you end up deciding that title loans are the right solution for you, after reading about all the pros and cons of them, then you ought to fill out our online application straight away! Let’s learn more about What Are the Pros and Cons of Title Loans!
Pros of Car Title Loans
Easy Application: Unlike the application processes for personal loans at traditional banks, title loan applications are exceedingly simple and quick so that you can get the money you need far faster. With TFC Title Loans, our online application only takes about five minutes to complete and turn in. We call you up soon after to tell you the next step you don’t need to worry.
Current Employment Not Necessary: Even though it is required that you provide proof of income, it is NOT required that you need to provide proof of employment. A regular income or an ability to repay the loan can be proven by a wide range of things such as employment, unemployment benefits, disability, retirement, inheritance, and/or pension.
What Are the Pros and Cons of Title Loans
Perfect Credit Not Required: Since title loans are a secured loan that uses your car as collateral, there is no need for you to have an absolutely perfect credit score. We do check your credit but only to ensure that you aren’t currently undergoing credit counseling or in active bankruptcy.
Quick Cash: When everything moves smoothly, we will be able to get you your funding as fast as the very next business day after you are approved. This is one of the best benefits of a title loan since financial emergencies usually require money very quickly.
Keep Driving: We don’t take your form of transportation from you so there is no need for you to worry about that! We only place a lien on your car title and keep that then you drive off in your car with the money.
Cons of Car Title Loans
Higher Interest Rates: Since there is a higher risk for lenders, there are usually higher interest rates for title loans compared to unsecured loans.
Possibility of Repossession: There is a lien placed on your car title which means that if you were to default the loan and be unable to pay it off at all, your vehicle could possibly be repossessed.
Short Repayment Schedules: Some title loan lenders require that customers pay off the loan in a period as short as 30 days.
TFC Title Loans Minimizes Cons
Sliding Interest Scale: TFC Title Loans has a special product meant to decrease the interest rates for title loans as much as possible. It is a sliding scale interest rate so each loan’s interest can be unique to the customer.
Longer Repayment Schedules: TFC also has far longer repayment schedules so that your monthly payments are low enough to be affordable, somewhere between 24 and 36 months.
No Prepayment Penalties: We charge absolutely no prepayment penalties here at TFC Title Loans. So, you can pay off your loan as early as you would like to in order to avoid the acquirement of interest.
Now you know What Are the Pros and Cons of Title Loans! If you have any remaining questions about the pros and cons of title loans then please give us a call and we will happily each and every question you have. But if you have already decided that you would like to obtain an auto title loan with us then fill out our online application today! Learn more at https://www.consumer.gov/articles/1013-car-title-loans
Frequently Asked Questions
What the biggest benefit of a title loan?
Money is available to you regardless of our credit score. You can receive a large lump sum of cash today by proving your monthly income and owning a car.
Are title loans good for emergency money?
Title loans are great for making money in a hurry because you get money quickly and keep your car. No company can match TFC Title Loans when it comes to low interest rate fast cash for any situation.
Do car title loans work the same as home title loans?
Yes, both title loans are given based on the value of the owned property.
DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.
Trading Financial Credit, LLC may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. Trading Financial Credit, LLC does not offer or service student loans. California loans are made or arranged pursuant to a California Financing Law License : 603-8192. Arizona: Loans made pursuant to Arizona Department of Financial Institutions.
New Mexico: Loans made pursuant to New Mexico Regulation and Licensing Department Financial Institutions Division Small Loan Company License. Small Loan License 02069
*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.
*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.
*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.
*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.
*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.
*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.
*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.
*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.
*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.