We at Idaho Title Loans, Inc. know that there are plenty of title loan misconceptions out there. Many people think it’s pretty much impossible to take out such a loan, and if they manage to get the urgent cash, the sum will be way too small. Furthermore, they believe the lender will take the vehicle away while the client repays, which will certainly become a big inconvenience.
In reality, things are completely different. This guide from Idaho Title Loans, Inc. will debunk some title loan misconceptions. We will provide accurate information about car title loans to help you determine if it is the best financing option for your emergency.
Top 7 Title Loan Misconceptions
When you need to borrow money to afford an urgent financial emergency, one of the options available to you is title loans. However, there are many myths about title loans that paint them in a negative light. The reality is different from the myths, as they could be an appealing emergency financing option for borrowers who need money in less than one business day.
The following are seven title loan misconceptions:
1. Getting A Title Loan Is Difficult
The perception of title loans is that most cannot get approved. The process is long and difficult, and borrowers need tons of items to get approved. That is not the case, as many borrowers can get approved the same day they apply.
You can get approved for a title loan as long as you have fully paid off your car. Our requirements are simple, and the entire approval process can take less than 30 minutes.
The following are the simple required items needed for title loan approval:
- Your driver’s license or state-issued ID card to prove your identity and age
- A lien-free car title in your name
- Your vehicle for a quick inspection
2. You Need Good Credit For Title Loan Approval
Some borrowers may worry that their credit score can prevent them from borrowing money through a title loan. The reality is that title loans do not have a credit requirement. While some lenders may do a soft credit check, your credit score should not affect your ability to get approved.
Creditworthiness is important for traditional bank loans that are unsecured, as it can establish whether the bank can trust you to make your payments on time. With title loans, borrowers provide their car titles as collateral, giving the loan lender security if the borrower cannot repay the loan amount. You can borrow title loans for bad credit or no credit.
3. You Won’t Get A Lot Of Money For A Title Loan
One title loan misconception is that you can only borrow small amounts, which won’t help when faced with expensive emergencies like medical bills and auto repairs. That is not the case, as title loan borrowers can receive up to $15,000.
The exact amount will be determined during a quick inspection. The sum will depend on the value of the vehicle and its condition. a few easy questions about your car, and the tool will provide you with an approximate sum. Remember that lenders usually offer anywhere between 25% and 50% of the vehicle’s value.
While you will not get tens of thousands of dollars, you will be able to borrow enough money to afford most financial emergencies. As long as your car is in good condition, you shouldn’t have a problem borrowing thousands of dollars.
4. You Need To Be Employed
At Idaho Title Loans, Inc., we do not require borrowers to prove their income to get approved for title loans. We will not ask borrowers to prove their income to gain title loan approval. As you can see above, a recent pay stub is not a requirement for vehicle title loans.
If you are unemployed or only working freelance, you can still get approved for auto title loans. However, we only recommend borrowing title loans if you feel you can afford repayment. If you’re unemployed, it may be worth it to wait until you gain employment to borrow money, as failing to repay the title loan can lead to you losing your car.
5. Title Loans Are Too Risky
You shouldn’t go for a loan if you know that you won’t be able to stick to the repayment schedule. However, there is nothing risky about taking out a loan if you know that making the payments on time won’t be a problem for you.
We are transparent with borrowers about the repayment process and what interest is collected on the loan. We will explain how all of this works to ensure you can afford repayment.
Just make sure that you do not borrow more than you need, as that might become an additional economic burden that is a bit too high. For example, if you need $2,000 for medical bills but get approved for $5,000, only borrow $2,000 to repay your costs and make title loan repayment easier.
6. Title Loans Will Ruin Your Credit Score
Many borrowers worry that their credit score will immediately go down after borrowing a title loan. That is not the case. At Idaho Title Loans, Inc., we do not do hard credit inquiries that can lower your credit score.
We also do not report our title loans to the three major credit bureaus. That means you can borrow money with title loans without it getting reported, so your credit score will remain unaffected.
7. You Will Lose Your Car
A common title loan misconception is that you have to give up your car to borrow money. It’s essential to remember that this is a title loan, not a car loan. You use your lien-free vehicle title as collateral.
The majority of lenders will allow you to keep the car while you’re repaying the loan. The company will simply hold onto the title until the full amount gets repaid. As long as you manage to keep up with the repayment schedule, you can continue using your vehicle as you normally would.
Title Loans Vs Traditional Bank Loans: The Main Differences
Now that you understand more about title loan misconceptions, you may be wondering about title loans vs traditional bank loans. Which is better for your financial situation? While both can provide emergency cash, the process and requirements are different.
Learn more about the differences between title loans and traditional bank loans below:
- You don’t need a good credit score to take out a title loan: Banks usually require borrowers to have a relatively high credit score to qualify for a loan. The requirements of title loan lenders are not as strict. You can qualify with a poor.
- Title loan approval takes less time than bank loans: It might take the bank five or more business days to approve the loan. With a title loan, you would generally find out whether or not you qualify on the spot, and you might receive the money in just one business day
- Title loans have shorter terms: 30-day terms are typical for title loans. The repayment period for bank loans can range from a few months to several years, and not every person would be financially and psychologically ready to take on such a huge responsibility over an extended period.
How To Get Approved For Title Loans
Do Idaho title loans sound like the right financing option for you? You can start the approval process online today and get approved in person in less than 30 minutes. You only need to complete a few steps that take less than a day to receive rapid cash through car title loans.
The following are the steps involved in getting a title loan:
- Submit your name, zip code, contact information, and vehicle details through our online contact form
- Discuss title loan terms on the phone with a loan associate
- Bring your required items to the nearest Idaho store location
- Have your requirements verified and vehicle inspected
- If approved, sign the title loan paperwork to finalize the process
- Receive your emergency funds the same day or the next business day
Get A Title Loan In Idaho – Borrow Up To $15,000 Today!
Now that you know the truth behind some of the most common title loan misconceptions, you can get a fast approval title loan today. Idaho Title Loans, Inc. can help with our speedy, efficient approval process that takes less than one day. Borrow money in as little as 30 minutes, regardless of your credit score, with our car title loans in Idaho.
Contact us for economic assistance by filling out our online form. Get fast financial relief with the help of our friendly loan associates today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
