Many people always rush to the bank as their savior when they have financial constraints. Some people have even gone to extend of mortgaging their car, houses and other properties. Car loans, house loans and even students loans were easily accessible from financial institutions until the economic crisis that struck in the year 2008. Now, it is easy to get auto title loans. This crisis resulted to money lenders to tighten up their requirements and as a result, they ended up not lending much cash.
This has forced people to look for alternatives they can use when they need extra cash, and one of the alternatives is the car title loan. Car title loans have emerged as the best alternative not only to individuals and families in need but to people who have no credit history as well as have bad credit.
Car title loans have become very important because of the strict lending policies at banks and other financial institutions. With a car title loan, you’ll have the opportunity to access money for a variety of things. The best part with car title loans is that they are processed quickly.
Here is a breakdown of how car title loans work
If you own a car that is paid for, you can use it as collateral to take the loan. Your car title, however, must be free of any liens. If its fee, then you can visit any title loan company and get your hands on extra cash you need and pay your pending or emergency expenses.
The application process is pretty simple and easy. You fill the application form then you’ll be asked to produce verification documents that will verify your identity, residency and prove that the title indeed matches the vehicle.
Once everything has been verified, the vehicle will be assessed its value before the loan agreement can be drawn. Most car loans are processed in a period of 24 to 48hrs while others are completed the same day. Until money is paid, conventional loans can take up to 6 to 8 weeks.
In this case, your vehicle is the one being used as collateral and therefore, there is no need for credit checks associated with conventional loans. These are some the reasons car title loans have become an alternative solution to people who have a financial emergency. For those who need extra money fast, then car title loans are the best alternative. No need to worry about poor credit history.