No credit check auto loans and automobile title loans are loans which have something to do with cars and the borrower’s bad credit issues but they are not the same in all aspects. Yes, both of them are loans that can be taken out for bad credit but they are not designed for the same purpose. The purpose of auto loans no credit check is to provide loans to people who are looking to get a car loan in order to buy a new car with bad credit while the purpose of title loans is to provide cash loans to those who are willing to place the title of their vehicles as collateral for the loan because of their credit situation. So, if you are in need of cash for whatever purpose but you have a bad credit which is why you find it difficult to get a regular loan, do not be confused. What you need is an auto title loan and not an auto loan.
Auto Title Loans – Pros And Cons
• Auto title loans are great options for bad credit and for immediate cash needs.
• They will allow you to get the money that you need within the same day.
• With these loans, you can get an amount which is equal to 50% of the value of your car.
• They are considered as collateral loans but lenders will only need the title of your car and not your car itself so you are still free to use it even if the loan is still unpaid.
• Auto title loans are short term loans with repayment term of 1 month to a maximum of 4 months.
• They come in expensive rates and fees.
• If you fail to pay an auto title loan on time, the title of your car will remain with the lending firm and you can never have it back.
Your car will then be taken away by the lender and they will sell it to pay off your unpaid loan.
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