An automobile title loan allows the borrower to make use of their car title as collateral. Most of these loans are available to people with bad or no credit. In fact, many automobile title loan companies do not check a potential borrower’s credit score. This is good news to somebody with bad credit. The decision to grant the loan depends on the value of the vehicle. If you own a valuable vehicle, then you may be surprised to find that you can get a high loan amount.
These types of loans provide another advantage which is a quick closing. In some cases, the approval process and loan application take a few minutes. Some other types of loans can take days maybe even weeks to get approved, adding to the stress that is involved in the loan process.
Low Loans Amount
Many loan firms provide loans in amounts as low as $100 and this is good and better than other types of traditional loans, where the loan amount starts from $1,000. It is good for people who need some hundreds of dollars because they don’t have to add up all that additional interest that comes from the monetary value that was loaned. Therefore, the result is that you only borrow the money cash you need, and you’ll not be trapped because of interest on cash that you don’t need. This means you will be saving more money.
Knowing the Collateral Value
During the application process, the lender will evaluate the vehicle, to assess the value of the vehicle. Most lenders make use of the Kelley Blue Book to measure the worth of the car. It’s often wise to authenticate that the lender gets all the right information about the vehicle which includes the make, model, year, even the type of engine in the vehicle is a factor that is used. It is also ideal to inquire how the lender intends to determine that value, and if they refuse to reveal their method, don’t bother to work with them.
The maximum amount of the loan is generally half of the blue book value. This means that the higher the value of the vehicle, the higher the value of the loan. It’s essential to understand that borrowers who apply for this type of loan must have their vehicles outright. Car title loans lenders will not accept a vehicle that is not fully owned by the borrower as collateral.
Easy Application and Approval
Automobile title loans are an outstanding choice for borrowers who have a vehicle and need quick cash. There are no required lists of character references, no anxiety-inducing approval process and no credit checks. Some individuals who take out a loan need some last minute funds for an emergency medical procedure or an important purchase that cannot be postponed. Borrowers can apply for the title loan online, and then drive their vehicle to the lender for the inspection. This makes it stress-free and easier for you. Some car title loan companies will even send a representative to the borrower’s home to check the car.
Just the Ticket
Like all other types of credit, car title loans can be a blessing when life throws a curveball. It seems as if most expensive and unforeseen life events happen at inconvenient times, and many people have had their life savings ravaged by the economic crisis. When something vital just can’t wait such as surgery or other health crisis, you can consider car title loans as the remedy for financial anxiety.