Sometimes that date when you get paid seems very far away, especially when one is financially vulnerable. Loans are a means of taking care of emergencies. These emergencies could include repayment of debts and mortgage loans, sorting out kids’ school fees or any surprising circumstances like accidents or illnesses.
When this sort of financial crisis hits anyone, it usually takes lots of money to settle the demands, which is difficult when one has a single source of income. This is where loans like car title loans act as an amazing means of helping people out of such unforeseen financial circumstances.
Car title loans
Car title loans are becoming popular because the procedure is less complicated. When obtaining this loan type, the borrower needs to use their car as collateral, and the loans given usually range between $150 to $1500 — some loans even go as high as $5000. One thing about this loan type is that the amount the borrower gets is determined by the value of the car.
Applying for a car loan
To apply for a car title loan, the borrower can either do it online or by visiting the office of the interested company. While applying, a photo identification of the car with the car title has to be submitted as well.
When this is done, the company will demand the car keys and also request that the borrower buys a roadside plan. When this is submitted, the value of the car will be evaluated and a loan befitting its worth will be sent in the form of a check.
When the loan is given out, the company usually expects the full loan amount including interests and other charges. Failure to repay the loan on time can risk the car being repossessed and sold.
Car title loan advantages
Ability to provide cash
Obtaining a car loan is a great means of handling financial difficulties and resolving unforeseen circumstances. With car loans, the borrower gets cash which can be very helpful, especially if they get paid weeks later.
Get money fast
As compared to different types of available loans, car title loans are quite fast — it can take a day and a maximum of two days. Borrowers do not need to wait in line or deal with new applications. As soon as the loan is approved, everything is good to go.
Little or no requirements
This loan type has very little requirements as all the borrower needs is a car. Banks or credit cards are not required when obtaining a loan. The car will be used as collateral should the loan not be paid, which makes the entire process easy.
The car can still be used as usual
Though the car is collateral when obtaining a car title loan, the borrower can still go about using the car just like before. All one needs to do is make prompt payments so as to prevent the car from being reclaimed.
