Top Reasons to Consider an Auto Title Loan

Auto title loans are short-term loans where a borrower’s vehicle title serves as collateral. The borrower has to be the outright owner of the car to avail the loan. These loans typically have duration of less than thirty days.

Therefore, your vehicle can be your source of finance when your bank account has run out of funds. You will not have to go through lengthy and tedious loan application and approval processes if you apply for car title loans in San Jose. In addition, you will not be left at the mercy of your friends and family. We all know how embarrassing it can be to ask friends and family for financial assistance. Auto title loans in California can be easily availed, at times, within a few hours or days of application. Here are the top reasons why people consider title loans in San Jose.

Bad Credit Ratings do not Matter

If you require an urgent loan but do not have a healthy credit rating, you do not have to worry. This is because title loan companies usually do not take your credit score into consideration to determine your eligibility for an auto title loan.

In case of title loans, you only need your car as collateral to avail the loan. This makes the approval process very easy and simple. An auto loan company will often provide you the loan provided your car has a greater worth compared to the amount of the loan that you need.

Get the Loan Quicker

There is no denying that having access to a quick loan facility is very comforting, especially when you find yourself in a sticky or unforeseen financial situation. This is the main reason behind the immense popularity and attractiveness of auto title loans.  The process is both convenient and snappy, and plenty of customers will attest to it.

On many occasions, the time taken to get the loan approved can be as low as a few hours. As soon as you complete and submit your loan application form, the auto loan company will approve it swiftly and you will receive the funds on the same date. This is why many customers enjoy peace of mind as they know that if they run into any financial trouble, they have the option to resort to a car title loan to quickly bail them out.

Pay Medical Bills

With the passage of time medicals bills are getting more expensive and many Americans are facing the brunt for a while now.  American citizens, on average, spend a sizable 6.5% of their net incomes on medical bills.

As many employers in the US are cutting down the health coverage of their employees, it is likely that will not have an adequate health cover. This can mean that you will have to cough out the funds required for various emergency treatments or health issues. In these situations, auto title loans offer immense relief by providing immediate access to funds without having to go through the typical hassles of lenders.

Pay Utility Bills

In case you are on the verge of losing your electric supply or other utility service because of non-payment, you will need cash on an urgent basis to get out of this problem as you cannot live without these necessities.

Auto title loans allow you to get the cash quickly and easily. In most cases, the funds are at your disposal within a matter of hours. Using a car title loan, you will be able to keep your utilities intact with sufficient time to pay off your loan. It can also help you generate surplus funds for other daily requirements.

You do not have to Give up your Car

The great part about an auto title loan is that you can use your car after securing your loan. This is because auto title loan companies do not have to keep your vehicle physically locked up somewhere. Instead, they only retain the title of the vehicle, which acts as collateral. Once you repay your loan the title loan company will return the car’s title documents as well. This helps ensure your personal and professional life is not interrupted because of the unavailability of your vehicle.

Stress Relief

None of us is immune to stress that is associated with tough financial situations. In these cases, you have to come up with ways to relieve the stress as quickly as possible. During these times a car title loan comes in handy as it helps you manage your sudden or unforeseen financial issues head-on and on a timely basis. Car title loans have a simple underlying philosophy which is to provide easy access to cash to anyone who owns a vehicle. This makes these loans accessible to a considerable chunk of the population.

Pay Mortgage or Rent

If due to a job loss or other emergency you are not able to pay your mortgage or rent, a car title loan can get you out of trouble. Depending on your car’s value, you can usually borrow enough money to make a couple of payments and get ahead slightly.

More Economical than Payday Advances

As auto title loans require your car as collateral to secure the amount of the loan, the lender is guaranteed to recover their money even if you do not repay the loan. This translates to less risk for the lender, which in turn allows them to charge a lower rate of interest on the loan.

This means that, in most cases, the interest rate charged by a title loan company is likely to be lower compared to the rate charged on payday advances and other online lenders that operate outside of US and are not regulated by any laws. This can result in considerable interest savings over the duration of your loan.