So you’ve heard the term car title loans here and there and now that you need some extra cash, you’d like to know more about them. We’ll be more than happy to tell you all you need to know about car title loans.

First, let’s start with the benefits of car title loans.

Most people who go for these loans are the same market that go for payday loans. That being said, car title loans are great for consumers with less than stellar credit who don’t have access to the same borrowing resources as others.

Car title loans tend to be issued very quickly, so if you are in a tight bind and can’t wait for a bank to consider your loan application for days and days, then this is a good option for you. So now that we see that consumers with bad credit can access rapid loans, let’s take a look at the downside of car title loans.

The very term indicates that in taking out these loans, you are putting up one of the most valuable pieces of property you have to your name as collateral. Once this is done, you can face a couple of outcomes should you have any difficulty in making your payments.

Outcome #1 – you borrow from one of the stricter companies and they take possession of your car, which they are well within their rights to do after you’ve signed the contract. Roughly 10% of people who take our car title loans end up losing their vehicles.

Outcome #2 – instead of taking possession of your car, the company instead offers you the option of paying penalty fees, which can triple the overall cost of your loan.

Let’s not forget about the term of the average car loan. The industry standard is 30 days for repayment, which many consumers mistakenly assume they can automatically pay off on time without properly considering what might arise in the meantime.

Add to that the fact that, when calculated on a yearly scale, the interest rates charged come out to 300% or more, making car title loans one of the most expensive on the market. When it comes right down to it, this looks good on the surface, however there are better options.

At LoanAway we do two things car title lenders do – we process applications very rapidly. We offer same-day approval and many of our customers find themselves with cash in hand just 24 hours after applying.

We also offer loans to consumers with bad credit – so no need to worry about whether or not you have the right credit score. We consider everyone.

Unlike car title loan companies, we do not seek any collateral whatsoever. All of the loans we offer are unsecured, so you never have to worry about losing valuables. We’re also a lot more flexible. Our customers can expect repayment schedules as long as 36 months.

If you want to learn more about how we can help, either contact us online or reach out to us over the phone: (866) 689-0091