Have you ever heard of Auto Title Loans? Without conducting a thorough research, you may not be familiar with Auto Title Loans. They are also known as Title Loans, Vehicle Equity Loans and Auto Pawn Loans to give a few different names. Not only are they more flexible in repayment terms, they are very much preferable than any payday loan. But if you cannot qualify for a loan from the standard bank due to a blemish on your credit or something about your lifestyle that they do not like, then they can be ideal for you. After fully paying off the Title Loan the lien is removed from your vehicle and the Title Loan lender has nothing to do with you anymore, unless you decide to reborrow. It is much easier to borrow the second, third. etc. time. Many customers build long lasting and strong relationships with their Title Loan lender and use them for quick emergency loans. As the Title Loan lender knows the customer, the repeat loans can be turned over very quickly. The borrower is basically using their paid off personal vehicle as a line of credit. This arrangement works very well for many borrowers.
You will find that many Title Loan Lenders are very understanding and will work with you in situations where you run into difficulties. You must keep in mind that Title Loan lenders are finance companies, not repossession companies, and are not in the game to take your vehicle if you default on your payments. They much prefer to work with you as opposed to taking your vehicle. As Title Loan lenders use your paid off vehicle as collateral for the loan they are secured and therefore do not look delve into details like your previous credit score or financial capacity. Their main concern is your car value, as this is the security, and they lend against this.
The True Benefits of Borrowing With You Paid Off Vehicle
Title Loans are a fast and easy way for many with bad credit and no credit to get an easy loan using the equity in their paid off vehicle. All vehicles typically qualify to be used to secure a Title Loan, whether it is a car, van, SUV, pickup truck or sportscar. Motorcycles can be used, but there are different rules to use these. See Motorcycle Storage Loans to get more information on this way of borrowing. As well there are loans that can be given by using other types of collateral such as machinery, landscaping equipment and such. See Collateral Loans for more information on this way of borrowing.
While traditional lenders focus on your credit worthiness and can takes a week or longer to make a decision, a Title Loan lender simply looks at the value of your vehicle and lends against that. If the borrower calls a Title Loan lender and gives the details of their vehicle they can come in straight away to get a loan. It is not only same day service, it can be done in under an hour.
Title Loans can be processed online where the borrower simply follows the instructions. Click Borrow Online to see process. Only a smart phone and basic technological skills are needed to get a loan this way.
Auto Title Loans Tend Come With Interest Rates That Are Higher Than Banks
As Title Loan lenders are typically smaller than banks, they do not have the economies of scale and therefore must charge more to make a profit and stay in business. But as the hardship of life and government taxation have forced many people into situations that leave them with a bruised credit rating, the benefits of a bank’s lending rates are not available to them. This being the case, Title Loans are in many cases the best option available. Many people are driving around in a paid off vehicle and do not realize that they are in possession of an asset that they can easily borrow against.