5 Myths of Title Loan Companies – BUSTED
You probably already know about home equity loans, which allow you to tap into the value of your property that you’ve already paid off to get money that you need. But you may not be as familiar with title loans in Las Vegas, which offer the same benefits for your vehicle. You can get a loan for the value of the equity in your vehicle, giving you cash to pay off debt, take care of home improvements, or tend to other personal expenses.
Unfortunately, many people don’t get the car title loans they need because they are deterred by many of the myths around these loans. As a top title loan company in Las Vegas, we’ve seen a lot of these myths deter clients. Here are some of the top myths we’ve seen – debunked:
Myth #1: You Need Good Credit to Qualify
Unlike many other types of loans, you do not need good credit to qualify for a car title loan. Depending on the title loan company, you may not need a credit check at all to get the loan. The reason for this is that the loan is secured by the collateral in your vehicle. You are only approved for the amount equal to the equity in your vehicle, and if you default on the loan, your vehicle can be seized and sold to satisfy what you owe.
There is not as much risk for the lender with car title loans, so the requirements for approval are not as stringent.
Myth #2: Car Title Loans Have High Interest Rates
Many people confuse car title loans with other loans that offer fast cash, such as payday loans. While some of those other types of loans may have predatory practices such as excessively high interest rates, car title loans do not. Because these loans are secured by the value of your vehicle, they are not as risky and they typically have lower interest rates. You won’t get trapped in a never-ending cycle in which you barely pay off the interest, let alone the principal. You’ll be able to get the money you need and pay off the loan in a timely and affordable manner.
Myth #3: These Loans Have Prepayment Penalties
Nevada car title loans do not have prepayment penalties. If you have extra money and decide to pay off the balance faster than the term established, you can do so without a fine or other penalty. You can pay off a little extra with each installment, or you can pay off a huge chunk when you get a windfall, such as with a tax return or work bonus.
Myth #4: You Have to Give Up Your Car to Get a Title Loan
You hand over your title when you secure your title loan, not your car. The Henderson title loan company is not going to ask for your car when they give you the loan. After all, how would you get around if you had to give up your car? The only way you will lose your car is if you default on your loan, and the title loan company is going to work with you long before that happens to help prevent it. The company wants to be repaid for the loan; it doesn’t want to deal with the hassle of seizing and selling your car.
Myth #5: Title Loan Companies are Unfair to Borrowers
Many myths about title loans involve some variation of the company being unfair to borrowers, the loans being hard to pay back, or the company being engaged in predatory practices. The truth is that you can find shady lenders of all types. But if you are working with a legitimate title loan company, you will get good terms and good treatment. You just need to do your research ahead of time to make sure you are partnering with a reputable company.
Don’t let myths about car title loans stop you from getting the money you need. Talk to a title loan company in your area to learn what terms are available.
Title Loans 365 has an established reputation as a top Las Vegas title loan company. We offer car title loans in minutes for cars, trucks, and RVs. No credit checks are required. You can apply online or contact us in person to learn about the terms available to you. Call us or apply for a title loan online to get the money you need using the equity you have already built in your car.
TITLE LOANS 365
1810 E Sahara Ave #391
Las Vegas, NV 89104