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
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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
*Credit approval is subject to Trading Financial Credit, LLC credit criteria standards. Actual loan amount, term, and Annual Percentage Rate of the loan that a consumer qualifies for may vary by applicant. Minimum loan amounts vary by state. Consumers need to demonstrate ability to repay the loan.
*Application processes could take five (5) minutes to complete. Upon completion, a conditional approval may be given pending review of documentation. Funding time is based on the time from final approval following receipt and review of all required documents and signing, prior to 5PM PST on a business day.
*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.