A title loan is a form of a secured loan that you can get with your car as collateral. Though it comes with high interest rates, you can get approved in minutes. With over 2 million people using their vehicles to secure a loan every year, title loans continue to be popular. Before taking one, you should understand its pros and cons to avoid getting your car repossessed.

A title loan provider won’t run a credit check when you ask them for the loan. This ensures that you can get the quick financial assistance you need if you’re struggling to build your credit score and looking. Title loans have a pretty quick approval process that makes them convenient for borrowers. Once you fill out an application form for the loan, the lender will process the money on the same day. You’ll also receive the cash in your bank account instantly or within a few days, depending on your banking provider.

Unlike other short-term loans, title loans have shorter repayment terms (ranging from 15 to 30 days). You may lose ownership of your vehicle if you cannot repay the loan in the specified time. The lender will also charge you more fees and interest on top of the loan amount.

Though title loans can help you get out of a tricky financial situation, you need to review the loan terms. You should also take them if your income can cover the high interest fees and rates.