Should I get a Title Loan or a Personal Loan?
Finding the money you need to cover unexpected expenses can be daunting and stressful. Borrowers want to get the money they need, but they don’t want to overpay for the loan they obtain. If you have no savings in the event of a financial emergency, you are going to have to weigh your loan options and choose the right one that meets your needs.
Benefits Of Applying For An Online Installment Loan
Most personal loans are installment loans. This type of loan offers borrowers the ability to borrow a lump sum of money from the lender and pay it back in equal monthly installments. The interest rates for an installment loan online are generally fixed.
This means that borrowers will always know what their payments are going to be and, that makes them easier to budget for. When applying for any type of personal loan online, you will generally not have to put up any collateral to get approved.
Reasons To Get A Personal Loan
- Refinance Debts
If you have a lot of unsecured debts from multiple lenders, a personal loan can be used to consolidate all of your debts into one. This will make it easier to keep track of your payments each month to budget for. If you are consolidating credit card debts, the fixed rate from your personal loan will help you save money in interest. For some consumers, the amount paid overall each month towards the debts will be much more affordable when consolidated using an online personal loan.
- Big Purchase
Financing a major one-time purchase may also be a great use for applying for a personal loan. If you need to finance something big like a vehicle purchase and don’t have time to save up, a personal loan may be able to get you what you need. Home improvements, vacations and other renovation projects are common one-off purchases consumers use personal loans to fund.
Unexpected expenses such as major medical bills, urgent home repairs and vehicle repairs are also common expenses that personal loans are great for. Unlike revolving lines of credit, it is important to figure out how much you need before you apply. Once you are approved, you cannot ask your lender for more money until you finish paying off your current loan.
Reasons To Get Loan Using Vehicle Title
Another type of installment loan you may get involves using your vehicle’s title as collateral to obtain funds. This loan type is great when you need money quickly to cover unexpected expenses. Because you are putting up collateral, you will not have a difficult time getting approved.
- Quick and Easy Process
Applying for a title installment loan is quick. Oftentimes, you can finish the application in less than 30 minutes. Once the form is submitted to the lender and approved, you can receive your funds direct deposited to your bank account in as soon as one business day.
- Bad Credit Not An Issue
One great benefit of an title installment loan is that you don’t have to have perfect credit to get approval. The loan will be based on the value of the vehicle you use as collateral. You may be approved for more than your vehicle is worth if you have a good, stable job and other sources of income.
- Most Vehicles Qualify
Many types of vehicles can be used to apply for this type of loan. If you have a truck, car, RV, SUV or motorcycle with a clean title, you can apply.
- Vehicle Not Taken Away
It is a common misconception that your vehicle cannot be used while you are paying back your loan. This is not true. When you take out a loan using your title, you can still use your vehicle as you normally do while paying the loan back.