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Are Title Loans Good Short-Term Loan Options?

Are Title Loans Good Short-Term Loan Options?

Do you live near Florence, Alabama? Do you need some extra cash for unexpected home renovation or auto repair? Do you have an overdue bill or unexpected emergency that has put you in a financially difficult spot and you need cash quickly? If you do, you may find yourself in need of a short-term loan from Select Title Loans.

What Is a Short-Term Loan?

A short-term loan is a loan that is paid back over a short period, usually for a small amount of money. Short-term loans are generally required to be paid back in less than one year. Some short-term loans are for just 30 days. Long-term loans, on the other hand, are often for larger amounts of money and can usually be repaid over a period of several years, but ultimately this means paying more interest.

Short-Term Loans

One of the main differences between short-term and long-term loans is the difficulty in obtaining loan approval and how fast the borrower can get the cash in hand. Short-term loans are often easier to get for those who have problematic credit. In addition, short-term loans often have a quick application process, allowing potential borrowers to get the cash they need for a financial emergency quickly with no hassle.

Short-term loan lenders, just like all other lenders, are required to follow all federal and state laws and regulations that are applicable where they are doing business. In addition, most lenders offer options for repaying loans of any size in either a lump sum or in payments spread out over a period.

What Are Title Loans?

One type of short-term loan available in Alabama is known as a title loan. Title loans can be a great option for dealing with fiscal emergencies of any kind. A car title loan is a type of short-term loan that requires collateral. The collateral used for this type of loan is your car.

In order to obtain a car title loan, you must at least be over 18 and have a valid photo ID. You are also often required to show proof of income sufficient to repay the loan amount you are requesting. This proof is often in the form of your most recent pay stub.

Most importantly, to receive a car title loan, you will have to own a vehicle with a lien-free title. What does lien-free mean? It means that you own your vehicle outright and there are no other loans you’ve already taken out on the vehicle that have not been paid back. Only one loan can be taken out on a piece of collateral at one time. If you only have a small amount to repay on your old loan, you can pay it off before taking out a new car title loan for a larger amount now that your car is free of liens.

Once you have met all the requirements set by your particular lender, they will place a lien on the title of your vehicle, establishing it as collateral for your short-term loan. There are many lenders that offer short-term loans but you will find that title loans can often be one of the best options available to you for several reasons.

Is the Title Loan Process Fast?

The application process is quick and easy. For example, the application process at Select Title Loans is as follows:

  • Bring your vehicle with your title (free and clear of liens), and your photo ID to our Florence, AL location.
  • Fill out a simple application while we do a quick assessment of your vehicle.
  • We will offer a title loan based on the value of the vehicle and your ability to repay.
  • The transaction is for 30 days, but you have the option of renewing your account for an additional 30 days by paying the interest due, or you can pay your account in full.
  • You will receive your title back once you have paid your account in full.

You can receive your cash quickly. Many car title loan lenders including Select Title Loans offer same-day approval. Since you are using your car as collateral for your short term loan there is no lengthy and invasive application process like at many banks and other lenders. If you meet the eligibility requirements and have all the necessary documentation with you, the time from application to approval can be as short as 20 minutes.

With title loans, there is no need for a credit check to be run. Since you are using your personal vehicle as collateral for your loan, it is not necessary to run a credit check. So if you have any credit issues from your past, they will not prevent you from getting this type of loan as long as you can show proof of income and have a vehicle to use as collateral.

Get the cash you need quickly. Title loans offer you quick access to money in an emergency. Whether you have an unexpected expense or an overdue bill, title loans offer you a way to get cash quickly. After completing the application process you will receive your loan funds immediately without any long waiting periods.

Do I Get to Keep My Car with a Title Loan?

Best of all, you get to keep driving your car. Let’s face it, it is hard to get around and take care of your responsibilities without a car. Once you have been approved, your lender will place a lien on the title of your vehicle and hold onto it until the loan is repaid. Meanwhile, you are free to continue using the car as normal with no restrictions. Once the loan is repaid in full, the lien is removed from the title and it is promptly returned to you.

With an easy application process and quick access to cash, title loans are a great short-term loan option for those who find themselves in any kind of financial difficulty. In Florence, Alabama, the top name for car title loans is Select Title Loans.


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1203 N. Wood Ave.
Florence, AL 35630
Phone: (256) 767-2100

Mon – Friday 10AM – 6PM
Saturday 9AM – 2PM