When is a Title Loan a Good Idea?

When is a Title Loan a Good Idea?

July 14, 2022
When is a Title Loan a Good Idea?

If you have a clear, lien-free title on your vehicle, and in need of quick cash, you may consider taking out a title loan. As long as you clearly understand the risks and interest rates of this type of loan, taking out a title loan can be a solid option to access a relatively large sum of cash.

At Lending Bear, we offer transparent, accessible title loans to qualifying borrowers. In this guide, we’ll discuss when it can make sense to take out a title loan and how the process works.

What is a Title Loan?

These are a type of secured loan that allows borrowers to use their vehicle as loan collateral. This collateral secures the loan, and allows the lender to collect the car if the loan is not repaid.

These loans are typically short-term loans of 30 days and not low interest. In order to qualify for a title loan, the borrower must own the vehicle outright with no liens on the title.

When Should You Consider a Title Loan?

Borrowers who consider applying for this type of loan often have poor credit and are unable to secure a loan based on credit history.

It’s important to deeply consider the risks of taking out a title loan. If you fail to repay the loan, you risk losing your vehicle. As such, make sure that you can pay back the loan in full within the term period.

Title loans are short term, so make sure the reason you’re taking out a loan fits within a short-term repayment framework. You may want to think about other options you have such as borrowing from friends or family before putting your vehicle up for collateral.

How to Apply

First, you’ll want to do your research and work with a reputable lender who is state-licensed, well-reviewed, and lays out their terms fairly and transparently.

At Lending Bear, as a state-licensed lender with an A+ Better Business Bureau rating, we are committed to fair and transparent lending practices.

Borrowers who work with us may qualify for up to $10,000. We welcome titles for cars, trucks, and motorcycles. When you find a trustworthy company, then you can apply, typically in-person, for the title loan. You’ll need to provide personal information, income info, your loan request, and proof of your clear vehicle title.

What Happens Once You’re Approved?

Once approved, you’ll typically hand over your vehicle title and a spare key for the lender to securely keep until you repay the amount.

You’ll receive your cash, often based on your income history and vehicle condition, and then you’re on your way!

At Lending Bear, our title loan duration is 30 days, usually paid as a lump sum at the end of the loan period. We also offer the option to extend an additional 30 days with the payment of an extension fee.

What Are the Pros of Taking Out a Title Loan?

Title loans can be a solid option for a responsible borrower who has a reasonable, realostic plan to repay the amount in full by the required time.

These loans are relatively easy to obtain for borrowers with poor or no credit history.

The process of approval is typically quick, and you can receive the cash you need fast.

What Are the Cons of Taking Out a Title Loan?

These are not low-interest. You need to make sure you understand how much interest you’ll have to pay when calculating tbe full cost of the loan.

Using your vehicle as collateral can be a big risk, especially if you don’t have a clear, level-headed plan for repayment of the loan.

Contact the Pros at Lending Bear

At Lending Bear, we understand that sometimes life happens on short notice, and you may find yourself quickly in need of a large sum of cash. With our title loans, you can access this cash and rest assured that you’re working with a highly reputable, state-licensed lender. If you’re in need of a title loan, contact us today to get the cash you need.