Taking out an auto title loan is a reliable way for accessing quick cash with less income verification and without any credit check. The lending firm evaluates the cost of your automobile based on wholesale prices and offers you a loan depending on the approximated value of your vehicle. The lending company will hold onto the title of your car until you fully repay the loan. There is no limitation on how you should use your title loan money. Therefore, you can use it to pay off your debts.
What benefits can you reap from paying off your debts using title money?
1. Improving your credit score
By paying off your debts, you may raise your credit score significantly. Developing the habit of making responsible, timely payments is one step on the right path towards improving your credit. You can boost your credit score and credit profile by paying credit card debts and loans. Title loans can serve as a quick source of money in times of need, especially when you are focusing on building your credit profile.
2. Convenient repayment options
Title loans provide a host of loan repayment options, ranging from online payment to over-the-counter payment. You can repay them from any geographical location at any time of your preference. Since title loans have flexible and efficient servicing process, you can use them to pay off your debts.
3. Reduce stress
Being unable to pay debts from friends or even financial institutions can be extremely stressful. Fortunately, an auto title loan will help you overcome a financial hardship. Leveraging title loan money to settle your debts will help in eliminating the financial burden so that you can resume to your day-to-day routine as fast as possible.
4. Affordable than cash advances
Title loans tend to be a bit cheaper than payday loans and cash advances. They attract lower interest rates since your car’s title serves as the collateral. Thus, lenders have no reason to charge high-interest rates since the vehicle itself offers them a strong layer of security.
5. You will continue to use your car
The only thing you give up after taking a title loan is your vehicle’s title and not the vehicle itself. The lender will return your title once you finish paying off your loan. You will use the money to stabilize your financial status and use your car as usual.
6. Quick and convenient
Car title loans have gained immense popularity over the past few years due to their quick and convenient nature. The application process can take less than fifteen minutes. You can also receive the money within the same day of submitting the application form.
7. Fast repayment schedules
With a title loan, you will be aware of the amount you are required to repay in advance. The value of your car will determine the amount of the loan you will get. Therefore, if your loan is relatively small, you can repay the full amount once your next payday reaches.
Title loans have created a buzz in the financial services sector. They have proved to be a reliable debt management solution, particularly for individuals with financial difficulties. It is advisable to acquire them from licensed and reputable title loan companies.