Do you own your own vehicle? If so and you ever find yourself in need of money, you could use your car's title as collateral to get the money you need. This type of transaction is referred to as a car title loan. The lender will give you a set amount of money and establish a repayment plan. When you repay the money, you will get your title back. These types of loans are popular because the transactions can be done discreetly, and borrowers have peace of mind knowing that they do not have to borrow money from friends and family. The following points will help you to identify some key reasons these loans are worth considering.
Approvals are not Based on Credit
One of the most attractive things about car title loans is that they are not based on whether an individual has good or bad credit. Lenders do not obtain credit reports for these loans because they are considered secured loans. The title of the vehicle is what will cover the loan if the borrower defaults. A default would mean that the lender could legally take ownership of the vehicle. This should not be a problem if you intend to repay the loan as outlined in the contract.
Retain Use of the Vehicle
During the loan period, borrowers get to keep their vehicles. They only surrender the title. Driving the vehicle anywhere they choose is permissible. There is not a risk of losing the vehicle as long as the terms of the loan are met. This is ideal because individuals can continue to go to work, which will allow them to recoup the funds to pay off the loan. The loan can be repaid early if a borrower chooses to.
Fast and Easy Application Process
There is not a lot of information that has to be entered on a car title loan application. This makes the application process quick. Sometimes the application can be expedited and funds could be received the same day as the application in some cases. Another reason for the fast processing is that the loan will be secured by the title.
An auto title company is a good resource to use to learn more about title loans. They can explain their process to you. They can also give you an idea of their average turnaround. Most companies that offer this type of financial product have fast turnarounds on loans in comparison to traditional loans.
To learn more, contact a resource that offers auto title loans.