September 24, 2019
What are the Benefits of a Car title Loan in Alabama?
Why are you hearing about so many people choosing to take out a car title loan in Alabama? Title loans have made it easier for everyone to borrow a larger amount of cash faster and at a lower interest rate than ever before. The list of benefits goes on and on.
There’s No Credit Check
A car title loan typically does not require a credit check. The lender does not need to know about your previous financial status as the loan is backed by the value of your vehicle. This is particularly useful for those who have credit issues in the past, but it also makes getting a car title loan easier for everyone.
Every time a company performs a credit check on you at your request, your credit rating temporarily drops. The idea behind this is that someone looking for credit must be in a financially unsound situation, particularly if they’ve made multiple requests for credit in a short period of time.
As car title loan companies usually don’t require a credit check to be performed, your credit rating will not be negatively affected when you apply for the loan.
Use Your Loan Any Way You Choose
Lots of loans come with conditions on what you spend them on. Home improvement loans, car purchase loans, and mortgages are all types of loan that restrict what you spend the borrowed money on so that there’s less risk for the lender.
This doesn’t help when you have a pressing need for cash for another reason. Car title loans do not restrict what you spend the borrowed money on. The most common uses for a short-term car title loan is to cover expenses when an expected paycheck is late, for car maintenance, for payment of one’s mortgage or rent, or to pay for high utility bills or medical bills.
You Can Still Use Your Car
Compared to other short-term loan options, car title loans are also more convenient. You can still use your car when you have a car title loan taken out on it. You can still use it for daily chores, getting to and from work, and everything else your family needs. Other short-term loan options often require you to leave the security item with the lender, but not so with a car title loan in Alabama.
You Can Borrow More
Loans range in size from $150 up to $5,000. This is more than you’ll be able to borrow through a payday loan or similar short-term loan that depends on your income alone.
The value of your vehicle is the predominant deciding factor in how much you can borrow, but proof of your ability to repay a loan in the form of salary statements or similar proof of income also dictates how much you can borrow.
You Can Get Lower Interest Rates
Title loans often get mislabeled as high-interest loans, but in fact, they’re usually available at lower interest rates than other options available to you. Take the case of a cash advance — the lender has very little protection against losing all of the money they’ve lent you. To compensate, they have to charge higher interest rates to cover the cost of the occasional loans that go bad.
With a car title loan in Florence, Alabama, the lender has a ‘lien’ on the car. Put bluntly, this means that if a customer doesn’t repay the loan then the company has a right to seize the car as repayment. This is obviously fair, as they’ve lent the customer the money in good faith. This rarely happens, though, as financial service companies are in the business of making loans not selling cars, so they do their best to make the loan repayable for the customer even when the customer is struggling.
As there’s less risk to the lender, there’s less need to add on interest as a loan delinquency contingency. Paired with the competitive market, this has driven down the interest rates offered by car title loan providers in Alabama.
Convenient Repayment Schemes
Car title loan providers have been ‘disrupting’ the industry since their inception, and this includes offering a wider range of ways for you to make repayments to your loan. Typically, you can make payments over the phone, have payments automatically deducted from your bank account monthly, use internet banking, make payments in person, through the company website, or set up a standing order.
If you think you may have issues making a repayment, you can talk to the lender. Car title loan providers are typically small businesses that work hard to make lending through them as easy, convenient, and versatile as possible. It’s another reason why choosing a car title loan usually makes more sense than trying to rely on an Alabama banking institution.
Say Goodbye to Stress
We know there’s a good reason that you’re seeking out a fast cash loan on a short-term basis. Everyone has times where there’s an unexpected bill that comes through the letterbox that needs to be paid now while you’re struggling to make things meet. Why continue to try and juggle all of these small items that are eating away at your monthly income?
Taking all of these small credits and loans and paying them all off with one convenient loan makes your life much easier while saving you money. Take the time to calculate how much you could save in monthly interest charges on your credit cards, bills, school fees, and loans if you pay them off all with a single, convenient car title loan. When you’ve paid off the car title loan, your car title is returned to you and you’re free from all of the burdens you’ve been under.
Do your homework; check the different options available to you from an Alabama car title loan provider. If it makes financial sense, then take out a car title loan to start using the equity you’ve stored in your vehicle to improve your life.