Car title loan is considered as the simplest and easiest type of loan by most of the people. It gives you instant money and you need not to pay high interest rates. Unlike traditional banking loan, car title loan doesn’t ask for the credit score or any personal collateral other than vehicle title. The approval of the loan even takes less time or no time when compared to traditional banking loan. It gives you instant money and the lender doesn’t even possess your vehicle. The car title loan is based on simple interest.
Here are some reasons why you should opt for car title loan for cash crunch situation:
Quick Loan Approval Process
The car title loan approval is a quick process and takes less than an hour to maximum a day or two. The lender initially inspects your vehicle condition and decides the loan amount on the basis of your vehicle condition. He checks the vehicle title and other required documents (driver’s license, residential proof). Some of the lenders even ask for a photograph of the vehicle from different angles and the borrower’s income source during the documentation process. If the value of the car is greater or equals your loan amount then the borrower gets instant approval.
Less Paperwork
Unlike other loan approval process, car title loan takes half the time and paperwork. There is absolutely no need for tens of documents for the verification and inspection purpose rather they thoroughly inspect the vehicle. The documents required for a car loans includes:
1. The vehicle title or the pink slip (vehicle must be registered on the name of the borrower)
2. The driver’s license (with the name same as on vehicle title)
3. Residential proof
4. Details of income source
No Credit Check Required.
The approval of car title loan doesn’t depend on the credit score of the borrower. The person with a good or bad credit score both can get car title loan. The basic of the car title loan is they lend you money by keeping your vehicle title as collateral and it doesn’t have anything to do with your credit score. If any borrower fails to pay-off the loan in a given time interval the lender has the choice to sell the car to receive the remaining loan amount.
Easy Loan Payment Options
Just like the loan process, the payment options of the car title loan is easy and flexible. There are different ways to go about paying off your car title loan and the borrower is permitted to choose whichever way they want. Moreover, there are several ways to pay off the car title loan that does not include the use of an actual bank account. Monthly and timely payment can be made each month in any of the following ways:
- Visit a payment location in person
- Mail payments to the payment center
- Pay by phone with a credit card or a cheque
- Monthly automatic electronic payments from any checking account
Good Loan Amount
The amount borrowed is based on the current equity in the car, the value of the car, the ability of the borrower to repay the loan and the law of each state. Most of the lenders give the loan of around 25% to 50% of the value of the car. You can get a loan amount of thousands of dollars from $2,500 to $50,000 depending on the condition and market value of your car. Additionally, you can get a better loan amount depending on the condition of your car. The better the condition of the car, the more the loan amount borrower can ask for!
