If you are experiencing financial difficulties, you will likely have gone to the bank for help. You may have tried to remortgage or finance any of your properties or assets, or you may have borrowed from credit card companies. However, since the economic crisis, it has become increasingly difficult for people to obtain finance through the traditional means. This is also due to the fact that so many people now have a bad credit rating. Credit history is, in fact, one of the top factors in deciding whether or not someone is worthy of financial help nowadays. Added to this is that many people have lost their jobs, replacing them with positions for lower pay and fewer hours. As a result, there is now a real need for financial solutions for people who simply do not meet the criteria for traditional loans. One of these solutions is the car title loan.
What Is a Car Title Loan?
Through a car title loan, people are now able to access money regardless of their credit history. These loan constructions only require people to own a vehicle outright, putting it up as a security deposit. They do not even have to hand over the keys to the car, as only the title document will be required. As such, people can also continue to use their car for the duration of their loan.
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These types of loans are approved and processed incredibly quickly. After applying, you could have the money in your account within 24 to 48 hours. Sometimes, approval is even quicker, and the money could be transferred to you that very same day. This means that you can instantly meet whatever financial obligations you had.
Why Should You Choose a Title Loan?
If you no longer want to go through lengthy applications in which every last detail about you is scrutinized, only to be turned down by someone in a grey suit in a dark office, then the title loan may be right for you. You only have to be able to present your title deed to prove you are the vehicle’s owner. A few other requirements include:
- Being at least 18.
- Having a valid driver’s license.
- Proof of residency.
- Proof of income.
Some title lenders will also request you to have references should you not be able to repay the loan. These loans tend to have lower interest rates associated to them, so that may be something to consider.
Since the title loan is a very quick and easy alternative to going to traditional financial institutions, including credit card companies, banks, or other lenders, it is no surprise that they have become so incredibly popular. Do understand, however, that this is a financial commitment that you have to be able to meet, and you shouldn’t apply for such a loan if you do not think you will be able to repay it. However, if you have a short term need, then this loan may just be perfect for you.