When you need a large sum of money right away, but the bank can’t help you, a car title loan can be the answer to your problem. The principle of a title loan is simple: the lender evaluates your car and gives you a sum of money for it. He keeps the car title as insurance while you get to keep the car. Depending on your car and its status, you might get as much as several thousand dollars or as little as a couple of hundreds. Most borrowers give between 25% and 50% of the car’s total value. There are two main ways to repay the loan: single payment or monthly payments. If you choose a single payment loan is usually given for a single month, while monthly payments loans can be active for up to six months.
There are several categories of people who can benefit from Car Title Loans Sacramento, from those who have bad credit to those who want to save money on the interest or simply need money fast. For each category title loans come with a number of unique benefits.
You have bad credit score
When you want to get a loan, your bank officer will check your credit score. Unless your score is good, there are high chances the bank will deny the loan. Most banks give loans to people who have an above 700 score and some might approve a loan even if your score is around 650. For students, who typically have low credit scores, this is really bad news.
A car title loan doesn’t take into account your credit score, because your car is the guarantee for the money. This means people with low credit score can easily get a loan, without having to worry about their eligibility. At the same time, getting a car title loan is not going to affect your credit score, which is a huge advantage.
You want a low interest loan
A car title loan is secured by the car title, which enables the lender to give you a low interest for the loan. This means you will repay a lower amount of interest, compared to a traditional, payday loan. On the long term, the title loan is a better option, as it allows you to save money on the interest.
You want a short-term loan
For people who want to borrow money on a short-term, title loans are the best option. With a maximum length of six months, title loans allow you to get cash fast and repay the loan with a lowest interest, fast. In other way, you get the money fast, then you repay the loan fast and you can carry on with your regular life.
Speaking of getting cash fast, there are many situations in life when you have to pay for an unexpected event, like a surgery or a home repair. Title loans take between 10 to 30 minutes to be approved, so you can walk away with the money you need on the spot.
Car title loans are a good option when you need cash right away, your credit score is low or you just want a low interest, short-term loan.