Why Car Title Loans Are The Best Types Of Emergency LoansFast Action Finance
In the current economic times, it has become more common to find people having to apply for emergency loans for one reason or the other. Many types of such loans exist, including car title loans and payday loans. However, the common feature between most of them is the fact that they are usually paid out much faster and with less of a hassle compared to regular bank loans or other credit facilities. The car title loans are particularly attractive for people who are in a financial bind. Some of the reasons for this include:
Applying for them is very easy
The application process for a car title loan is one of the least troublesome you are likely to encounter. In fact, the vast majority of car tile loan lenders out there use the application forms to only capture the bio-data of each person who applies for the loan. This usually means submitting basic information such as your name, residence and address. This makes it the perfect type of loan for people who need the money in a rush, since it means that they don’t need to keep running around trying to get other documents.
The other advantage of this is the fact that you will have a lower chance of making mistakes when doing the application. When applying for a bank loan, for instance, the fact that you need to sign so many documents means that the chances of making a clerical error increases. If this happens, you may end up having to restart the whole process over again, which wastes a lot of time and can be very frustrating.
The other way in which most car title loan firms make it easier for you to apply for the loan is the fact that you can now do it online. This is a much easier way of submitting the forms, and the fact that you can keep a copy of the same means that it would be easy for you to resubmit it in case you end up making a few mistakes in the original copy.
They have a high rollover rate
Rollover is described as a process where the repayment period of a loan is carried over to the next payment period if you are unable to service it. For instance, if you got a loan during the month of March and agreed with the lender that you would be making payments starting April, failure to make the payments in that month does not mean that the car will be recalled. Some lenders will allow you to roll over the payment to the next period. This is a feature that is classical of the car title loans.
One of the benefits of this is that it allows you to handle the loan more effectively. Remember, the fact that you are getting an emergency loan means that you may not be prepared to service it as regularly as you would any other type of loan. By rolling some of the payments over, you can avoid repossession of the car. However, you should keep in mind that some firms will slightly increase the interest rates on the loan if you decide to roll the payments over, so this should not be a method you use to constantly avoid making payments unless you absolutely have to.
They are paid within minutes
As long as all your documents are in order and it turns out that the car is in your ownership, you will be able to get the loan in a matter of minutes. In fact, some lenders boast that they can process an application and make the payment within half an hour. This makes it perfect for handling emergencies, since you would not have the luxury of time when doing so.
There is room for negotiation
Most of the time when you are applying for an emergency loan, you will want to do so in such a manner that you will give yourself enough room to start paying it off. Most of the time, crises occur when you are least prepared, so taking a loan under standard conditions might not be practical. For instance, if you are injured and need the money for hospital bills, you might want to defer the payments for a month or two, so that you don’t have to worry about making the payments while you are still recuperating.
Most car title loan lenders will allow you to do this. They can agree to modify their terms and conditions to allow you to have a more comfortable time paying it off, as long as your demands are practical.
As you can see, there are many reasons why you should get a car title loan when you are in a fix. When you examine their features, they are actually made for such use.