When unexpected expenses crop up, a title loan is a viable and practical solution to help bridge the gap between the bill’s due date and your next payday. But what things do you know about this financial tool? There are a lot of myths and misconceptions out there, so learning the facts may change your perspective. Here are five key points everyone should know about title loans.
1. Bad Credit is No Problem
One of the most appealing aspects of a title loan is the flexibility regarding credit scores. Unlike unsecured bank loans, which often require a high credit score, title loans use your vehicle as collateral. This means your credit score isn’t a primary factor, making title loans more accessible to more people, even those with bad credit.
2. You Need a Lien-Free Car Title
Your car title must be lien-free to qualify for a title loan. In other words, your vehicle must be fully paid off, with no outstanding loans or debts attached to it. The title serves as proof of ownership, and having it free of any liens allows you to use it as collateral.
3. The Loan Amount is Linked to Your Car’s Value
The amount you can borrow through a title loan depends on how much your car is worth. To determine market value, lenders assess your vehicle’s make, model, year, and overall condition. This valuation process ensures that the loan amount is between 25 and 50 percent of your vehicle’s worth, making it fair collateral.
4. You Get to Keep Driving Your Vehicle
A common misconception about title loans is that you must give up your car. This is far from the truth. Even though the lender holds the title as collateral, you can continue driving your car as usual. As a result, getting a title loan doesn’t disrupt your daily life or ability to get around.
5. The Application Process is Fast and Easy
Title loans stand out for their easy application process. You can even apply online from the comfort of your home, making it a hassle-free option when you need cash fast. Best of all, the process takes as little as 30 minutes, and an instant funds transfer to your debit card or bank account makes the money available as soon as you sign.
Why Choose VIP Title Loans?
It can be hard to know where to turn when you need financial support. If you own a car and can show proof of income, you may qualify for a title loan! There’s no better place to turn for title loans in Texas than VIP Title Loans.
Our commitment to our customers is reflected in our low interest rates, flexible terms, and unmatched savings that other lenders simply can’t match. We’re here to offer you fast money when you need it most, with all the time you need to pay it back. For more information, please call us at 817-265-2274, fill out our online application form, or visit one of our five convenient locations in the DFW Metroplex.