There are many short-term loan options available to help you get through a difficult financial time in your life. One of these options is auto title loans. While there is no such thing as a short-term loan option that is right for everyone, more and more people are finding that the benefits of an auto title loan are a perfect fit for their needs. Continue reading to learn more about three of these impressive benefits.
Benefit #1: Access To Larger Loan Amounts
Most short-term loan options only offer access to rather limited amounts of money. This can be a problem if the financial obligation you must meet requires more money than what these other loan options offer. For many people, auto title loans can provide the solution to this problem since this type of short-term loan offers people the opportunity to qualify for higher loan amounts. However, it is important to note that not every loan applicant will have access to the same loan amounts. This is because your maximum loan amount will be based on the value of the vehicle you are looking to borrow against.
Benefit #2: No Need To Surrender Your Vehicle
One of the primary issues with some short-term loan options is that you must surrender the items you use as collateral until you have repaid your loan. This is not the case with most auto title loans. While a lien will be placed against the title to your vehicle until you have repaid your loan, you will still be able to maintain use of your vehicle while the loan is active. This benefit can be very important for individuals who rely on their vehicle in order to get back and forth to work. After all, you will not be able to repay your loan if you are not able to continue earning money.
Benefit #3: No Credit Check Needed
While exact loan qualifications will vary from lender to lender, most auto title loans can be obtained without the need for a credit check because auto title loans do not rely on your creditworthiness in order to determine how large of a loan you are able to get. Instead, this determination is based upon the value of your vehicle. The more your vehicle is worth, the more you will be able to borrow. However, it is important to note that while you may be able to obtain a car title loan with little or even bad credit, you may still be required to provide proof of income in order to demonstrate you have the means with which to pay the loan back.