Car Title Loans Vs Traditional Bank Loans

Posted by James Richards on October 1st, 2019

Whether you are in need of money for buying a new car, paying medical bills or some cash for your personal project, you have two financing options to deal with such requirements i.e. Personal loan and Car title loan. It is very obvious that some of you might are be thinking that if you can handle your financial crisis with both loans then what is the difference between them. How can you recognize the best loan that best fits your needs? What would be the best idea?

Learn which type of loan would be best for you

It is important to get familiar with these loans before signing the loan documents. It will help in making the right decision at the right time. A Personal loan is a great option for those who do not have enough money and want to borrow money for something they do not have funds. Keep in mind that personal loan does not include property. It is mainly for your personal needs such as travel, education, home/office renovation, purchase of any vehicle, etc.

It is an unsecured loan that is generally taken from a bank or finance company. For such a loan, you have to keep something of value as collateral. It can be a vehicle or property. If you do not have any of these, you are not eligible for a personal loan based on these lenders’ terms and conditions. Here, the amount of borrowed money is relatively low and interest rates are very high. If you are unable to repay the loan, the lender can seize your asset or increases the interest rates to a high percentage in order to recover the loss.

A car title loan is designed for those who need fast cash and do not have enough time to wait for personal loan approval to meet their financial needs. If you have a car and ready to keep your car title as collateral to get fast cash, this loan is a perfect choice for you. It is a secured loan that does not require any bank or finance company as a lender. Even an individual can also be a lender who provides such a loan service. There are no standard loan approval policies and terms & conditions. Each lender can have its own terms.

The amount of money you can borrow depends completely on your car value. Several other things are also considered such as car existing condition, its model, etc. Car Title Loan has usually low-interest rate. In most cases, no repayment penalties are involved. For these loans, many lenders provide the facility of an online application form that makes borrowers easier to get registered and apply for their desired loan from their home or office.

TFC Car Title Loan is a leading company that helps people to get fast cash using the title of their car. Loan approval in less than one hour is the main benefit of applying for an auto title loan with us. There is no need to waste your time in comparing several services for the loan when you are getting everything here at the same place.