If you are conversant with how conventional loans work and their requirements, you would undoubtedly appreciate auto title loans. Sometimes all you need is a quick source of cash to settle your personal or business financial emergencies. Have you heard of auto title loans? Perhaps it is time to learn a few things about auto title loans. Read on to understand why they are a great option to consider.
1. Quick Application Processes
If you have tried applying for a bank loan in the past, you know it requires a lot of paperwork, background screening, and answering several questions. Before the application, you might spend even more time looking for necessary documents like financial statements and business plans.
However, you can save yourself the trouble of spending a lot of time on the application phase by opting for auto title loans. It takes a few minutes to apply because the lender doesn't request much information from you. They may ask you to provide your vehicle title, which should be free of liens, and copies of identification papers. Once you fill out the application forms, you will receive the money in your account within a short waiting period.
2. Your Credit History Doesn't Matter
Many conventional loan providers lock out many applicants due to poor credit history. If your rating is not impressive enough for them, you don't stand a chance of a successful loan application. However, auto title loan lenders rarely consider credit history when reviewing applications. They prefer to take your vehicle title as security for your borrowings. Therefore, you should consider car title loans if you have poor credit records.
3. Keep Your Vehicle and the Money
What if a lender requests for your car to approve your loan? In this case, you would experience inconveniences since you would not use your case. However, it is worth noting that the loan provider only requests for your car title. The document is enough to stand in for your loan as collateral. You might need to take your vehicle along for inspection and valuation, but you won't leave it behind with the lender. After application, you will receive your funds and continue to use your vehicle as usual.
4. Flexible Loan Repayment
Unlike normal loans that deduct money automatically from your account, title loans allow you to repay the borrowings yourself. Depending on your financial muscle, you could choose to pay weekly, monthly, or every fortnight. It is often a good plan if you are in business.
Now that you understand how auto title loans work and why you should consider them, you might want to find a reliable lender. They are an ideal source of quick cash for your personal and business needs.