Why a Title Loan Could be More Beneficial than a Personal Loan
When a big financial need comes up, you may not have very many options if you don’t have the savings to cover it. You may not be able to use a credit card, or you may not want to. So, what are your options?
You can go to the bank and take out a personal loan. Or, if you own your vehicle, you can take out an auto title loan. A personal loan is an unsecured loan, while a Las Vegas auto title loan is a secured loan that is based on the value of your vehicle. Because the loan is secured, the lender can seize your vehicle to satisfy the debt if you do not pay the loan (though that scenario is rare).
When you need money quickly, what is the better choice? Here are a few reasons why a title loan in Las Vegas could be more beneficial than a personal loan:
You Can Borrow More
Personal loans are awarded based on nothing more than your perceived ability to pay. The lender is taking a big risk on you, so it is going to do what it can to minimize that risk. One way it will do that is to keep the amount it lends you to a minimum.
When you take out a Henderson title loan, you are borrowing against the value of your vehicle. The lender knows how much your vehicle is worth and knows that it has the right to cash in on that value if you default on your loan. You are more likely to get more money when you take out a title loan in Henderson, which can make all the difference, depending on your need.
You Can Get a Lower Interest Rate
Interest is often based on risk. That’s why you usually get a lower interest rate when you have better credit. That’s also why you usually get a lower interest rate when you take out a Las Vegas title loan.
With a Las Vegas title loan, the lender has security for the debt: Your vehicle. The lender knows it will almost certainly get what is owed, no matter what happens. Therefore, it is likely to offer you a much lower interest rate than a bank that gives you a personal loan. That personal loan is granted based on your promise to pay – backed up by your history of paying on time, of course – so it is much riskier, and it will come at a premium.
It Won’t Hurt Your Credit
When you apply for a loan, the lender is going to check your credit. The check alone will actually be a hit to your credit. The more you apply, the worse it will be.
Title loan lenders in Henderson do not check your credit. You can have horrendous credit and still get a title loan – you just need proof of steady income and a title in your name. That’s good news if you have limited options because of your poor credit. But it’s also good news because you know that applying isn’t going to hurt your credit more. You can get the money you need without making your situation worse.
If you need money quickly, don’t bother applying for a personal loan. You can get more benefits from a title loan, including being able to borrow more money for a lower interest rate. You also can protect your credit score. Plus, with a title loan, you can get the money you need quickly – usually within the hour – rather than jumping through a lot of hoops over the course of several days or more. Shop Las Vegas title loans in your area to find lenders that offer the best rates.
Title Loans 365 offers the best rates on title loans in Las Vegas and Henderson. We offer title loans for cars, trucks, and RVs. We offer competitive rates, and our application process is easy. You can apply 24 hours a day, seven days a week. You can apply online, and you can get approval within minutes. Then you can visit us in person in Las Vegas or Henderson, provide your documentation, and walk away with cash in hand. Apply for your title loan online now, or visit us in person to get help through the process.