Car title loans provide quick assistance in the time of emergencies or problems. When crises occur, those who do not use banks do not have a means to access loans from traditional institutions and thus, nowhere else to turn. These loans provide short term relief to these individuals and their families and provided the loan is paid off as at when due, there are no problems. Car title loans provide the borrower with the cash he/she needs for that financial escape they need to keep their world afloat. There are a number of title loans that the lender can introduce to the borrower. These loans are much similar to payday loans in their duration. The duration is usually 14 days with an option to extend the repayment to a month. The difference therefore lies in the proof of ownership of car and the pledging of their car title as collateral.
Application can be done online or at a physical office. In a matter of hours, your loan is approved without the usual traditional institution loaning hassle. While these institutions are conservative in giving loans, car title loan companies are very flexible. However, people aren’t aware about their conservatism when it comes to loan amount to be approved. Lots of factors are to be considered. Taking into consideration that if you apply for a loan worth $1,500, they would have to carefully acess your monthly income and factor in the resale value of your car based on the make, condition, type and calculated risks involved. So, it is expected that your expectations are not so high and be happy that they have your best interest at heart. You don’t have to lose your car and payment can be right on time.
To qualify for the loan, borrowers have to at least be 18 years of age and must own a car not more than 10 years old, worth at least $2,500. The borrower must have a clear title to the car being used as collateral. This would mean no other liens against the car. The borrower also has to give the following information; driver’s license, car registration, social security card, proof of insurance, most recent pay stub, current electric bill and phone bill. Four character references must also be provided with a spare set of keys. Everything except for the keys can be provided online through a secure website from the comfort of your home.
When applying for a title loan, it is important to use the funds wisely and pay back as at when due. Making payments on time and according to loan agreement can reflect positively on your credit score which is one of the reasons subprime borrowers take title loans. It should not take more than 24 hours for the lender to arrange your cash based on the value of the car. The present condition of the car and the resale value is considered and an interest set based on this value. A few basic forms would be required to be filled and you get the cash. If your pay check is due in about a week and you need quick cash to sort yourself, a car title loan lender would be a wise choice and save you from the embarrassment of asking around for cash.