A title loan is a loan that is given to a person in exchange for the title to their car. After you pay back the loan, the lender will give back the title to your car. There are many advantages to using this type of loan, if you need quick cash. The following are just a few of them.
Your credit will not matter
Because you are offering collateral for the loan, title lender does not care if you have good credit, bad credit or anything in between. They will want to know that you have an income because they want you to pay back the loan. It is true that if you don’t pay back the loan, they will take possession of your car. However, they are not in business to sell cars. They prefer that you to pay back the loan.
You get to keep possession of your car
This is much different than if you attempt to get quick cash by pawning something. A pawn shop doesn’t care about your credit rating either, but whatever you decide to offer as collateral for the loan, it must remain in possession of the pawn store. This can be a problem if it is something that you don’t want to lose such as a family heirloom. Occasionally, a person may not be able to pay back a loan. If this happens with a title loan, the worst case is that you lose your car, but you can always get another car.
These loans are convenient
Like many payday loans, a title loan can be applied for online. You can get approved quickly. You will have to bring your car to the lender, so they can verify its condition. Once this is done, you will have to sign paperwork and hand over the title to your car, and the lender will hand you a check, and you can drive away with the money you need.
When you apply for cash loans in Jacksonville FL, you will need proof of your identity and usually own your car free and clear. Some title lenders are willing to pay off your existing car loan, as long as you have equity in your car that will serve as collateral.