Do you need money now for an unexpected bill or to pay your rent and avoid late fees? If your car is paid off, taking out a title loan can give you access to the cash you need on the day you need it.
When it comes to title loans, there are many myths floating around. Some of these myths may make you think that a title loan is not right for you when it could actually be a great solution to your money woes. Here are four myths related to title loans as well as the truth about these misconceptions.
1. You Give Up Your Car When You Take Out a Title Loan
One of the most common myths related to title loans is that you have to give up your car when you take out a title loan. However, when you take out a title loan, you do not give up your car.
You simply sign over the title of the car to the lending company. As long as you make your payments, your car will remain in your possession. When the loan is paid in full, the title is transferred back over into your name.
2. You Need Good Credit to Take Out a Title Loan
The second myth related to title loans is that you need good credit to take out a title loan. The truth is that many companies who offer title loans do not even do a credit check, and those that do will typically work with those who have bad credit.
You are securing the loan with your car’s title. If you fail to pay the loan, your car can be repossessed and sold by the title loan company. As such, there is little risk to the lender, so they are able to work with those with challenged credit.
3. Only Those With Low Incomes or Poor Credit Use Title Loans
Another myth surrounding title loans is that they are only an option for those who have low incomes or poor credit. But people from all walks of life find themselves in binds. They may have money tied up elsewhere that they can’t immediately access, or they may have great credit but not the time to take out a loan or wait for a credit card to come in the mail.
Title loans allow anyone with a car to quickly get money for the title without having to wait days for approval from banks or other traditional lending agencies. So a title loan can be a great option for anyone who needs cash quickly.
4. All Title Loan Companies Charge the Same Amount
The last myth related to title loans is that all title loan companies charge the same fees and interest rates. The truth is that different title companies will offer different rates that likely depend on a variety of circumstances.
The maximum amount of interest that can be charged by title loan lenders is determined by the state. However, not every company charges the maximum amount. If you need a loan, call around or visit different lenders to find out how much they charge for both their lending fees and interest rates. This can help you secure the best rate for your loan.
When used responsibly, a title loan can be a great way to quickly get the money you need. If you are in need of a title loan in the state of Georgia, Title Exchange is here to help. Contact one of our seven locations and let us help process your title loan and provide you with the money you need today.