If you are in financial trouble or need money for tackling an emergency, you will not have many choices with a hazy credit report or a low credit rating. Moreover, if your unpaid debts are already bringing the creditors to your doorstep, you will surely have a tough time to qualify for a bank loan or from a big financial institution. While there are several alternatives of loan for those with bad credit or otherwise, car title loans are extremely convenient and provides easy and fast cash to all those who need money in emergency.
Bank loans are cumbersome
The primary reason for choosing the option of car title loan is that it comes with minimum formalities and does not require the borrower to fulfill a plethora of qualifications unlike bank loans. As a matter of fact, more and more people are now focusing on loans from other sources as bank rules have become stringent and only a handful of people have the option of applying for them. At the same time, borrowers must be careful about the features of other alternatives and confirm the terms and conditions of the loan from the lender before rushing into an option that apparently looks attractive.
Car title loan: The basics
What are the features of car title loans? This loan is offered to a car owner who owns a vehicle of fairly good repute and should have repaid the car loan fully. The quality and value of the car determines the amount of loan for which you can qualify. After the completion of initial formalities, the borrower is required to fill out a form. If you are borrowing from an online lender, you can complete all the formalities from the comfort of home or office. The formalities of car title loan are simple and allow you to access the amount within a few minutes.
The cash is deposited in the bank account of the borrower; however, those who need cash even faster, can directly access the same from the office of the title loan. The advantage of car title loan is that you can start repaying the loan within ten days for which the rate of interest will be applicable for that period only. If you are repaying other loans or pressed with severe debts, it would be wise to repay this loan without delay. The lender of car title loan will not ask for your credit score. Thus, you can borrow an amount without facing the obstruction of a bad credit score.
Things to keep in mind
With car title loan, you will no longer have to wait for months in order to get an approval for a bad credit personal loan amount particularly if you need the money for an emergency. Instead of selling your vehicle when you are in need of money, you can readily apply for car title loan for meeting your requirements. However, you must have a car with a fairly good value for getting an amount that suffices your requirements. As far as repayment of the loan amount is concerned, you must repay it within the designated schedule in order to avoid losing your car to the lender.