The Advantages of Car Title Loans
Car title loans are popular among consumers for a number of reasons. The most common of which is their ability to provide fast cash in emergency situations or when your cash flow is low between paydays. Unlike bank loans which require a co-signer, stellar credit history, and, oftentimes, collateral, such as real estate or expensive stocks and bonds, car title loans are generally very easy to obtain, with very few minimum requirements. They work by allowing you to tap into the equity in a vehicle that you own. If you can repay them quickly, car title loans offer a low-interest solution to low funds, providing cash on short notice without the restrictions and paperwork of bank loans.
Car Title Loans Get You Money Fast
The high number of car title loans being used is largely attributed to the real benefits they provide to millions of consumers across the country. The biggest benefit to getting a car title loan is the speed at which they allow you to obtain money, which can make all the difference in the world when you need money on the fly.
Generally speaking, car title loans can be processed within a day or two. This is because the appraisal process is short. The lender need only examine your vehicle to verify that it is worth at least the amount you need to borrow. Online car value calculators and car value books also make it easy for lenders to determine the value of a vehicle. Inputting the make, model, year of manufacture and overall condition of your vehicle into a vehicle value calculator, or following a chart in a vehicle value book, the lender can determine the value of your vehicle and issue a car title loan accordingly, usually within 24 hours.
Because there are no credit score requirements or background checks involved, anyone with a vehicle of some value can obtain a car title loan. The value of the car secures the loan, which lessens the risk for the lender. Banks also offer secured loans, but, often, the value of the collateral that you are required to put up to secure the loan is much higher; the most common example of such collateral is real property.
Car title loans are perfect if you have less than stellar credit history, meaning you have bankruptcies, foreclosures, and collections accounts in your consumer credit file. An unsecured loan is when there is no collateral, and money is loaned based on the assumption that you can pay it back plus interest. Such loans carry a lot of risk, and lenders are less likely to approve you without a solid credit history, meaning you have little to no bankruptcies, foreclosures, or collections accounts in your consumer credit file. While a bank won’t typically approve borrowers with bad credit for thousands of dollars to repay bills or cover an unexpected cost, if you have less than stellar credit and a car with some value in it, car title loans will get you the money you need fast.