There are innumerable situations in which you might require cash suddenly! It could be a medical emergency, where the medical insurance does not suffice; or simply an irresistible urge to go on a foreign holiday! Whatever your reasons be, if you own a car and enjoy a clear title, getting access to a loan should not be difficult for you. In fact, there are companies across the US, who after assessing your car, will sanction you a title loan in less time, than it takes to get a pizza delivered to your doorstep!
What are Car Title Loans?
Car title loans or title loans, as they are commonly called, are also known as – ‘auto title loans’ or ‘pink slip loans.’ In title loans “the borrower can use their vehicle title as collateral. Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount,” informs Wikipedia.
Risks That Come With Title Loans
While being quick, convenient and easy; title loans are given out for short durations that usually last up to a month. And while the initial interest rates may be higher though manageable, if you should choose to get your title loan period extended- your interest will shoot up too! Also, you need to be aware that, if by any chance, you are unable to repay your loan-having given your car as collateral, you risk losing it to the lending company!
Benefits of Title Loans
For those who are not risk averse, title loans can spell opportunity, because of the multiple benefits that they offer! Gains that can convince you- that the risks involved, are minimal here as compared to the rewards.
Title Loans are Processed Speedily
One of the most important reasons for title loans becoming so popular today, is the speed at which they are processed for applicants. All you need to do is, check out the website of companies providing title loans. Compare their terms and conditions; and go through the loan amounts they are willing to extend. Pick the company you like the most, read through the documents they require from you.
You can fill up an online application form; or fill it up when you visit them with your car and the required documents. The lending company will next make a financial assessment of your car; estimate that the loan amount you require is in keeping with the worth of your car; and finally will move to sanction you the loan amount. Once your loan is passed, the much required cash should be in your hands within a day or two.
The Loan Application Process is Simple
When you drive down to the lending company office, ensure that you carry a government approved photo identity card, your residence proof, a proof of your income, and a clear title of your vehicle. Compared to the complicated loan application and loan approval processes of banks and other major financial institutions, companies lending title loans- have a much simpler process in place. All you need to do, as mentioned before is- fill out their application form; go through the car evaluation and document verification process; and your loan amount is ready to be sanctioned!
Title Loans Have a High Approval Rate
A lot of individuals, who have gone in for title loans, have been impressed by the high approval rates that their applications have seen. This adds to the appeal of such loans, given that those in need of urgent cash do not have too much time to chase a loan. Moreover, since title loan amounts extended by lenders are usually not very large, these are also easier to pay off.
Title Loans Don’t Require Credit Checks
A major factor contributing to the speed and high approval rate of title loans, is the fact that, these loans do not require any credit checks to be performed. The advantage of this for you is that, even if you have bad credit you can have a loan sanctioned against your car. In fact, as long as you can show some proof of your earnings- that satisfactorily establishes that you can repay the loan amount; you can get a title loan.
Despite the Loan –You Get to Keep Your Vehicle
Ultimately though, the most attractive aspect of car title loans is the fact that, although your car title papers are with the lending company-you still get to keep your car. So, in a way it is a win-win situation for you! A scenario, where you can enjoy the best of both worlds! Not only do you have the cash you require, but at the same time- you can continue to keep driving your car too!
This article was written by Eugene. Q. Willis, a financial writer, according to whom, title loans are one of the quickest ways to get cash in an emergency.