What are the Pros and Cons of a Title Loan?
More than likely you’ve come across an advertisement for title loans, but you may be wondering what they are and how they work. At Liquid Loans, we want you to understand all of the loan options available to you so you can make the very best decision for yourself, financially speaking.
A title loan is a high interest rate loan designed to help borrowers with obtaining cash quickly. When a borrower obtains a title loan, they are using their car’s title as collateral in order to obtain the funds they need. What is collateral? Collateral is an item held by the lender to protect themselves from risk, in the case of a title loan, a lender has the ability to repossess a vehicle if the borrower is not able to pay back the loan on time.
Title loans can be appealing to many because typically credit history is not considered in order to qualify to get money. So for many who are in difficult financial circumstances, credit challenged, or need quick cash to pay for a bill, a title loan can seem like a good solution to get the funds needed.
Now for the downside. It’s all in the risk. A title loan is considered highly risky because of the exorbitant fees lenders will charge and should you continue to run into financial trouble while paying back the loan, your mode of transportation, your car, can be taken away from you at a moment’s notice. Lenders may even require a copy of your vehicle’s keys at the signing of the loan and can even place a tracking device on your vehicle. If you rely on your vehicle to get to your job, you may be placing yourself in great risk as your ability to earn an income could be significantly impacted if you were to no longer have access to your vehicle.
This is why at Liquid Loans, we recommend considering other low risk options before putting your vehicle at risk. We have a quick and easy approval process for an online installment loan, you can visit your closest store location or even take 60 seconds to fill out our online application for a pre-approval. With an installment loan, you can borrow without fear of risking your transportation and our interest rates are extremely reasonable. In addition to this, there is no credit check required to get approved, your credit history will not be impacted at all by consulting with us about options. Our goal is to help you with your financial needs, but also put you in a better situation so you can easily pay back the loan and come back to us again should you need us.
Our Taylorsville location is easy to get to, we’re located off of Bangerter Highway on 5400 South, or feel free to call us at 801-890-0862 or stop by our store at 3762 West 5400 South, Taylorsville Utah. Or if it’s easier, you can always visit our online application here and one of our loan professionals will reach out to you right away to go over the next steps to help you get the money you need.