What Are Short-Term Loans?
No matter how well we manage our money, unexpected expenses can still take a toll on our pocketbooks. Not all of us can borrow money from friends or family, which is why many choose to take out short-term loans. While getting the cash you need quickly can be tempting, there are several things you should consider before taking one out. Here, the experts at Rapid Auto Loans explain everything you need to know about short-term loans.
Short-Term Loans Basics
We will likely face an unplanned event where we are short on cash and need money quickly at some point in our lives. Emergencies like repairs and bills can add up fast. One way to get the money you need is through a short-term loan. One of the most popular kinds of short-term loans is a car title loan.
Before applying for any kind of loan, it's critical that you understand that short-term loans are not like personal loans. To acquire a personal loan, you must have good credit and file tedious paperwork through a financial institution and can take weeks or months to process. To acquire a short-term loan, the lender, such as the experts at Rapid Auto Loans, will place a lien against your vehicle and give you cash in hand quickly! The flexibility of short-term loans can be beneficial to those who own their vehicle.
Benefits Of Short-Term Loans
For those needing a nominal amount of cash quickly and for a short time, you may want to consider a short-term car title loan. At Rapid Auto Loans, our loans come with a wide range of benefits that our competitors simply don't offer.
Some of these benefits include:
Lower Interest Rates
In most cases, the faster you repay your loan, the lower the interest rates. While taking out a short-term loan will require you to have higher monthly payments, you will pay back the loan faster. Lower interest rates also mean that the overall cost of your loan will be smaller. Shorter loans keep you from being underwater for an extended period. The faster you pay back your loan, the faster you can get back to saving! One of the best things about Rapid Auto Loans is that we offer competitive interest rates with a 12-month pay-back period. Most car title loan companies require full payment of the loan within 30 days.
No Extra Collateral
One of the largest disadvantages of taking out a personal loan is that you may have to put up your home or vehicle to serve as collateral. In the event you are unable to make your payments, the financial institution can take your property. With a car title loan, your car IS the collateral. While this may not seem positive, you no longer face the risk of losing other property. The best part? You still get to keep and drive your car!
Better Credit
Establishing and keeping a good line of credit can be difficult. If you do not already have excellent credit, traditional loans are usually out of the question. Applying and receiving a car title loan is much easier since you don't need to have good credit, or any credit at all. One of the main benefits of a car title loan is that they also help to build your credit! As you make your regular payments on time, the faster you will be able to establish good credit.
Better Value
While long-term loans mean lower monthly payments, it can also mean you pay more for your vehicle than it is actually worth. Between lender fees and higher interest rates, the cost of a long-term loan becomes much higher than a title loan. Taking out a short-term loan also means you will get more money in the event you decide to resell your car. Short-term loans mean you will pay back your loan faster, meaning your car will be newer and more valuable when you list it for sale.
Short-Term Car Title Loans in Florida
Having to take out any sort of loan can be a long and confusing process, which is why Rapid Auto Loans work with you to make it as easy as possible. The lack of good credit should not keep people from living their best lives. Acquiring a short-term car title loan with us means that you can get your life back on track quickly! With 22 locations, we proudly serve 60 counties throughout Florida. If you have any questions or are looking to take out a title loan, call us at (954)-678-5781 or apply online
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