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Pros & Cons of Title Loans7/11/2018 Unlike other types of financing, car title loans don't have a complicated or lengthy approval process. Since you are offering a form of collateral, car loans are relatively easy to qualify for, even if you don't have the best credit score. In fact, many lenders will provide car title loans without even checking your credit score or report. As long as you can show that you have a reliable source of income and a car worth more than the loan you are requesting, the lender will typically approve your loan application. BenefitsOne of the biggest benefits of car title loans is that they are very quick and convenient. The process is easy and quick and can be completed within ten minutes. Once you submit the form, you can receive the cash within the same day! If you get a car title loan, you can still drive your car. The car title is used as collateral in case the borrower cannot pay the loan back, yet once you make your final payments, the title is returned back to you. So you don’t have to worry about getting around when you take out an auto title loan. Disadvantages of Car Title LoansCar title loans often carry high interest rates. In some cases, these rates are significantly higher than credit cards rates and may even exceed 100 percent. While a few states have laws that prohibit such exorbitant interest rates, many do not. Car title loans are also short-term loans, which means that they must be repaid quickly. If you are unable to make your payments, late fees raise the balance even higher, and the lender will eventually repossess your vehicle, which leads to a host of other problems. TipsIf you must take out a car title loan, make sure that you understand the terms completely. Ask about the APR, as well as any fees that accompany the loan. Finally, make sure that you always make your payments on or before the due date.
Otherwise, the lender will add additional fees to the balance, and you may even lose possession of your car. balesloanblog.weebly.com/blog/we-love-local
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