Car title loans are becoming more and more popular especially in today’s uncertain economic conditions. The loan, which is secured by a vehicle with a clear title, has gained in popularity for a few reasons. Here is a look at a few.
A car title loan is processed usually within a matter of hours. A borrower fills out an application and it is reviewed by the lender. The lender will also require a form of identification and a proof of residency. Also, the lender will need the title of the vehicle. The title will be matched to the vehicle and the vehicle will be assessed for value. Once completed, the terms of the loan are drawn up and all that is left is for the borrower to pick up his or her cash. At companies like Florida’s Embassy Loans, this entire process is completed within an hour.
When an emergency strikes – a medical emergency or a plumbing problem in one’s home – many people do not have the funds to pay for it. A car title loan can provide a quick source of cash to help someone meet an emergency financial need.
When a loan is necessary, many people cannot qualify for a conventional loan from a bank or credit union due to a poor credit history. A car title loan is secured with the vehicle as collateral; therefore, there is no need for a credit check. A person’s credit history is immaterial, which makes title loans very popular.
Quick source of cash
The typical title loan is processed very quickly. Since there is no need for a credit review or a background check, there is not a lot of paperwork involved with a title loan. Bank loans require a lot more paperwork and, as a result, more time in processing. A vehicle title loan can be completed in a couple of hours and borrowers can have the cash they need very quickly.
The current economy has made title loans more popular. With high unemployment, there are many families that need that extra cash in between jobs. Whether it is for a rent or house payment or some type of emergency, a car title loan can help to bridge that gap between jobs.
Vehicle title loans are easy to obtain, quick to process, and can help borrowers out of difficult financial jams. Because of today’s crazy economy, title loans will become an even more popular method of helping out those with money problems.