Thu. Jun 20th, 2024
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Lucia Jensen, co-founder from WeLoans, said that “Title loans are often looked at as a last resort, but if you are approved, it’s a great way to get fast cash. The idea behind title loans is simple. You give the lender your car title, and the lender gives you cash. You will then have a specified amount of time to pay back your loan. If you don’t pay back the loan, the lender will take your car. There are several ways to get approved for a title loan, but the first and most important factor is credit.” 

The majority of title loan companies require that you have an active credit card in good standing with a major bank. This may seem like a lot, but it is actually very easy to get an active credit card. It doesn’t even have to be a credit card, it can be a store credit card, if you have a store credit card you’re well on your way to qualifying for a title loan. The next thing that you need to have is a car. This may sound like a stupid requirement, but without a car you can’t get a title loan.

Why are car title loans better than credit cards?

Car title loans are better than credit cards for a variety of reasons. One of the main reasons is the higher interest rate attached to a credit card. Credit card interest rates are much higher than car title loans. A credit card company can charge you up to 23% interest, whereas the interest for a car title loan is typically about 10%. The interest on a credit card is due immediately and there is no grace period. This can make a car title loan seem like a better option. Another reason people choose car title loans over credit cards is because they don’t have a credit history or they have bad credit. Banks are required to perform a credit check before issuing a credit card. If a person has bad credit, they are likely to be declined for a credit card. Car title loans don’t require credit checks, so anyone can qualify for one.

Advantages and disadvantages of car title loans:

Title loans are better than credit cards because they are a more preferable way to repay any unexpected expenses. Americans are struggling to pay their bills and their credit card is the easiest way to obtain the money needed to pay those bills. Most Americans believe that paying off the balance of their credit card is the only option but it’s not. There is another option that is better than paying off your credit card. If you are struggling to pay off your credit card, you shouldn’t wait to contact a company that provides car title loans. Car title loans are much better than credit cards because they don’t have interest rates attached to them. This is a major plus because if you currently have a credit card balance. You are probably paying a higher interest rate than the one that you would with a car title loan.