Top 3 Reasons Why You Should Opt For Car Title LoansFast Action Finance
Before we get started, what are car title loans? Well, these are loan products that require the borrower to utilize his or her car as collateral. With these loan types, lenders normally do not perform a credit check on the borrowers, meaning that anyone can qualify for them as long as he or she has a valid car title. The interest rates however are much higher compared to standard loan products due to the lack of credit check.
What if a borrower is unable to pay the availed loan amounts?
For one reason or another, if a borrower fails to pay back the advance loan amounts, the lender can legally claim the offered security against the loan, in this case, the car and put on the market so to recover his or her money. There are however some laws and rules that regulate these sorts of loans so as to prevent abuse by the lenders.
Why opt for this loan type and not any other?
1.No credit check requirement
Unlike other fast loan types, car title loans do not require any sorts of a credit check on the borrower in order to be approved. As the only needed thing so as the loan to be approved is a valid car title, the processing time is much faster. The car title in question however needs to be without any liens against it so as to be of use. Once this simple condition is fulfilled, then a borrower can instantly avail the required loan amount with his or her car title.
Generally speaking, car title loans are for durations of 30 days and not more. If however for one reason or another one is unable to pay off the loan within the stipulated period, then he or she can request for a repayment extension. The unique thing with this type of a loan product is that a borrower can extend it as many times as he or she want. One should however keep in mind that whenever the repayment duration is extended, then he or she is supposed to pay higher interests.
3.Easy to apply
Title loans are easy to apply as all that is required is to fill one simple application form online. Once this is done, the lender examines the offered car to estimate its value. This valuation is what is used to determine the loan amount a borrower can avail.
Different car title loan lenders have different lending rules. So it becomes crucial to shop around for the wanted loan product and then properly understand the terms and conditions before requesting for it. Having done this, it is then recommended that you take advantage of the best available option.
What happens if you default on the loan payments?
Firstly, before deciding to go for this loan type, it is vital to understand that you are getting it against the title of your car. As such, if you miss any of the payments, note that you are putting your vehicle in great risk of being repossessed. In order to avoid this, a borrower is recommended to make regular loan repayments.