With the way that our current economy is going, it’s getting harder and harder these days for people to work and earn enough for their living. There are many people that work multiple jobs just to have extra income and be able to cover all their expenses at home. However, it is often not enough. In spite of working overtime, there are many people that still find themselves short of cash at the end of the month. These are the crucial times when we need quick access to money. Good thing that many people these days are able to take advantage of car title loans whenever they are in need of quick access to cash. Car title loans provide low risk for both borrowers and lenders providing low interest rates and not requiring borrowers to put their homes down as collateral.
Car title loans for the most part, is just like any other type of loan. In this case, you just need to put down your car’s title as collateral. The value of the loan will be based on the value of your car. In case of car installments, the value will be based on the equity. This is the amount of your car less the amount of money that you still owe on your car. To rephrase, equity is the amount of your car that you own and not the part that you own the bank.
Once of the best advantages of car title loans is that they can be processed very quickly which is why it is the type of loan that people in quick need of cash prefer. This type of loan requires less paperwork when compared to home loans and the like. It’s as simple as proving that you car has value by showing paperwork, state the amount of the loan that you would want, and just sign over the title of your car to your loan provider. Another best part is that you get to keep your car and drive away with it while you pay back the loan. Upon completing your payments, your car title is simply handed back to you.
A car title loan is perfect even for people with not so good credit scores. As long as you have equity on your car, you can qualify for one and not need to have impressive credit score. The value of your car equity already offsets the risk for your lender. This is what makes a car title loan perfect for those with bad or no credit at all.
Because there are no credit checks needed, the process is much simpler so it takes less time which is good in case of those people that need cash quickly. The interest of car title loans is considerably much lower than other types of unsecured loans. So the next time that you find yourself short of cash and you need to get your hands on them to make ends meet, bear in mind that you have car title loans to back you up.