Title loans offer consumers the ability to receive a larger loan based on the value of a consumer’s vehicle. Only consumers with complete ownership of their vehicle are eligible to apply. The vehicle is used as collateral for the loan.
Using a secured asset offers new benefits for consumers.
- It’s less expensive than most unsecured loans.
- A secured asset enables a longer term loan vs. an unsecured short-term loan. This provides the consumer more time to save money, manage their budget and repay the loan.
- The approval process is faster than a traditional bank loan, which can be essential for unexpected bills, such as a medical emergency, car repair or divorce.
- Consumers with a poor credit rating are eligible to apply. Despite a low credit score, consumers may be approved based on their salary and the value of their vehicle.
- It’s a reliable safety net for small business owners with an immediate need for short-term working capital.
- Can serve as a sensible alternative to bounced check fees or late payment charges.
- Consumers maintain use of their vehicles throughout the term of the loan.