If I had to choice to take out a bank loan versus a car title loan I would do the latter. Now I know to many of you that may sound absolutely ludicrous, but here me out. I actually have perfect credit, and would be able to get a bank loan, at what I’m sure is considered a good rate, but I would be hesitant to do so because of the lengthy process and the credit history check. A bank loan requires so much more time and effort and it can be a lengthy process, the credit check can put a ding on credit score and show in your history. A title loan on the other hand does not do a credit check, but when you make you r payments on time, it improves your credit rating. I am not suggesting that people go out and get title loans over bank loans or credit cards, obviously that doesn’t make much sense, but for me it’s a better option.
A title loan, is a riskier and more expensive loan in some cases. There are places out there though that offer very low interest rates somewhat competitive yet not comparable to banks. For many it’s a personal preference, some people are not comfortable putting their car on the line for money, where as for me, that is motivation to pay back my loan promptly and efficiently every month. Bank loans are lengthy and can take a while to recieve, title loans can be approved and funded within 24 hours. The title loan company is pretty quick and efficient with giving their loans, it must be because once they have appraised your car and accept you they basically own your car so they know they that if you don’t pay they have your car.
Here’s my logic when comparing the two, essentially, there is only one reason why you would borrow money, and that is purchase something bigger than what you can afford. With that goal and intention in mind, surely you have prepared yourself and done the proper investigating, and made sure that you can pay back your loan no matter what. With that in mind, getting a loan from any different location should not really matter. It’s only the people that can’t make their payments that complain. Before you do this, it’s important to sit down and plan, making sure that you can afford whatever monthly payments you have to make. It’s only logical to have some kind of plan before taking out a loan, and if you even have one inclination that you won’t be able to keep up, then DON’T DO IT!! It’s as simple as that. Getting a loan is a serious business, if you don’t pay it back you will have to face some pretty serious consequences that will affect your life. Be responsible and take charge of your finances.
So to finish off here, not everyone will agree or understand my choices, but I still stick with the title loan, because of it’s no credit check and ability to build credit at the same time, it suits my needs just fine.