Car title loans provide immediate relief from financial distress should distress or hardship arise. Once disaster strikes, those who have low credit score have no means of obtaining loan from traditional credit institutions. As far as these loans are paid back as at when due, they provide quick financial relief. Car title loans provide the individual with the cash he needs to get out of that financial situation. Other types of loans like payday loans exist that offer succor for a short duration, usually 14 days that can be extended to a month with pretty much smaller sums. However, a car title loan offers more cash and duration of 30 days.
You can apply online as well as physically and in a matter of hours, you will have your loan approved without as much stress that you have to go through in a traditional credit institution to solve immediate financial issues as fast as you can. Car title loans are flexible and liberal when it comes to getting your loan approved and the amount to be loaned out too. However, they have to consider some factors when you seek to borrow more. They may access your monthly take home, factor in the resale value of your car based on its model and condition and risks from the economy as well. So, you should not expect it to be all rosy.
Qualification requires that you are at least 18 years and above and you have to own a car for which they would require its title. The car has to be nothing more than 10 years old and the title has to be free of any debt or the debt almost completely paid off. You would be required to provide salient information that would enable you get approval for the loan. Such information might include driver’s license, social security card, monthly take home, car registration and proof of insurance and utility bills like electricity and phone bills. You might also be required to provide for character references and a spare set of keys for the car. All information apart from the spare set of keys can be uploaded online from the convenience of your home.
Once you apply for a car title loan, it is important to have a good plan to pay back the loan on schedule as stated in the terms of the loan agreement to prevent repossession. Apart from being able to take emergency loans from the same lender next time, it improves your credit score. Most times, borrowers take car title loans so that it boosts their FICO score. It should not take more than a day to get your application approved so you can get the loan you need urgently. The present condition of the car and the resale value are considered before determining the amount that would be giving out by the lender. If you seek a quick method of getting a loan for an emergency situation, using a car title loan is wise but it is expedient you are able to pay back the loaned amount plus interest rates agreed upon to prevent the lender taking your car and selling it off to get his money back.