With the increased number of people depending on their pay-check for the living expenses, it has become extremely difficult to deal with the uncertain situation. Emergency medical bills or some surprise expense demands urgent flow of cash and left one with no other option rather than borrowing. People often get exhausted while borrowing money from financial institutions during the crisis. While considering the traditional institute including banks or credit unions one needs to have a good credit score and sound financial condition. The traditional loan process requires one to complete plenty of paperwork and the process is often considered as hectic and time-consuming.
Rather than getting stuck with the hectic and complex loan process, it is better to look for the most convenient option. A car title loan can be the simplest and easiest loan process which ensures instant access of cash to the borrowers. As the name suggests, the title loan process uses vehicle title of borrower as the collateral. The use of collateral makes the loan process secured while reducing the risk rate involved. Unlike other loan processes, the car title loan lender doesn’t determine on the repayment as the equity of the vehicle serves the guarantee to repayment.
The title loan offers a plethora of benefits to the borrower including simple loan process, less paperwork, no credit check, and convenient and affordable repayment structure. To complete the loan process the borrower needs to fill the loan application form with the vital information about the vehicle and requirement. The list of documents required for the processing includes the original vehicle title which is clear and lien free accompanied by a copy of car insurance paper, photo identity proof and proof of regular income.
The amount of the loan is being determined by the lending company after inspecting the condition of the vehicle. Since the loan process is secured; the amount of the loan is finalized depending on the worth of vehicle. One can get a maximum of $50,000 with the title loan process depending on the significance of the vehicle. Moreover, the interest rate of the auto title loan also varies from situation to situation as in case of secured loan it depends on a number of factors including the worth of the collateral, amount of loan and the repayment ability of the borrower.
However, the title loan lenders claim to understand the need of urgent cash and design the most convenient, flexible as well as affordable repayment structure. Even though the title loan lender doesn’t physically possess the vehicle, but in case of loan default they can repossess and auction it in order to settle the remaining loan amount.
Getting through car title loans is easiest as the complete loan process can be completed within a few minutes and the borrower is provided with instant access to cash but the loan default can lead to loss of vehicle ownership. In order to smoothly overcome the title loan without further damaging the financial condition, one must strategies on the repayment during the early stage.