A title loan is a good source of instant cash without giving up your means of transportation. It lets you tap your car’s value and borrow a larger sum of money than you could in a payday or signature loan. With a straightforward term and no hidden fees, it can bail you out in an urgent financial need with the chance to improve your credit score.
The benefits don’t stop there. If you pick a trustworthy lender and know how to manage your debts properly, Utah Money Center noted that it can help overcome your financial hardship. Here are the less-talked-about advantages of Utah title loans:
Other Vehicles Are Applicable Too
Many lenders accept titles for a variety of vehicles. Apart from your car, you may use your truck, motorcycle, ATV, or even a snowmobile. Of course, high-value vehicles allow you to borrower bigger loans.
Lower Interest Rates
A title loan can help you save interest. Unlike unsecured financial products, using your vehicle’s title as collateral makes you a less risky borrower. In turn, this will make your prospective lender more willing to provide lower interest even if you have bad credit.
Furthermore, the increasing competition among title loan providers can help you snag the most favorable interest rate. It’s not uncommon to find a lender eager to beat any competitor’s interest rate.
Flexible Payment Options
Generally, title loans are paid through a principal and interest repayment model. To accommodate the different needs of borrowers, though, some lenders offer an interest-only option. It will allow you to minimize your initial repayments for a certain period.
Title loan providers have different requirements in place. However, you can use practically any vehicle that’s completely paid off with no major body damage for as long as it’s in your name. If you can prove you have a steady source of income, you can qualify for a title loan in no time.