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.