What are Title Loans and How Do They Work?

 

Everybody wants to have a smooth ride in life. However, more often than not it seems like wishful thinking because the hardest thing is to anticipate emergencies that result in the sudden requirement of cash, and this can make the ride rough. Almost all of us have come across unexpected situations in life that put an enormous strain on finances. In such scenarios, we all wish for some additional financial support. The quicker you are able to arrange for loans, the better it is for overcoming the difficulty. Although loans are the best option for getting money, acquiring them is a time-consuming process. Therefore, you have to identify lenders who approve loan applications with minimum procedural requirements so that the money reaches you at jet speed.

Speedy loan options

There are many options of quick loans, but you need to be careful when choosing one. Loans that are available speedily usually come with a high interest rate because the majority of these are unsecured loans. Lenders just put the money in your account without being too fussy to check your credit rating and other parameters, and this increases their risks considerably. It is, therefore, natural that they charge very high interest to cover the risk. These loans have very short repayment period (usually within a year), and the high interest can drive you towards a debt trap. You can, however, avoid the pitfalls of unsecured fast loans by going with the better option of title loans that are much safe and secured without the dangers of other loans. Let us explore what title loan is and how it works.

Title loan – what is it?

To qualify for a title loan, you have to own a car because it is the primary requirement to be eligible for the loan. If you have a car and need money immediately, contact a company that deals in title loans and get the loan against your vehicle.

The lender puts the car on lien and grants your application. This allows you to enjoy the money as well as keep driving the car at the same time. The lender uses the value of the car to secure the loan so that in case you default, the lender is at liberty to monetize the vehicle to recover the outstanding loan. Since the lender has nothing to worry about once you pledge the car title to them, they disburse the loan at top speed. Usually, it takes 24 hours to approve and pay the loan, and in the case of extreme emergency, you can even get the sum in just 6 hours. You get the ownership of your car back once you repay the loan amount and the lender removes the lien.

Eligibility criteria

Drive in with your vehicle and drive off with cash – this is perhaps the best way of describing how speedily you can get a title loan. No credit score or any other financial evaluation is necessary for awarding title loans. As long as the title of the vehicle is in your name, you are eligible for the loan. However, if you have misplaced the original copy of the documents, you have to prove that you are the registered owner of the vehicle and that there is no outstanding payment against it.

Determining the loan amount

The lender uses several factors to determine the sum you can borrow against your car. Primarily, it is the value of the vehicle at the time of taking the loan that determines how much you get, but there are some other factors too. The condition of the car plays a significant role in influencing the loan amount. Additionally, the age of the car, its model, manufacturer or brand and its usage in terms of mileage are some other factors that help to decide the loan amount.

Credit scores do not matter

Credit scores are usually important for unsecured loans as lenders want to understand your level of reliability because they want some assurance that you will not default on the loan. In the case of title loans, since it is secured, lenders do not have any concern about credit scores because should anything go wrong, they can lay their hands on the car to arrange for the amount you owe.  People with poor credit rating are thus also entitled to qualify for title loans.

The process

The process of granting title loans is simple. It is a three-step process as described below. Title loans are available online, and you have to make an application by logging on to the lender’s website.  Just provide little personal information like your name, address, e-mail and contact details together with the loan amount and some information related to the vehicle like the year of make, model, style, and mileage. This completes the application that gets processed almost immediately. Provide a few documents like a driver’s license and some more that you have readily with you.

When you arrive at the office of the lender, he or she will assign a professional title loan processor to assist you.  The designated professional will then take you through the process. After having a look at the vehicle and checking the documents, they will assess the condition of the vehicle and decide on the loan amount that you qualify for. It hardly takes about 15 minutes to complete the process.

Get the best deal

There are many title loan companies, and you have to do some quick shopping around to get the best deal. Interest rates can vary, and even the terms of payment, fees, and other conditions are different. Look into the fine print of the offers to determine which option suits you perfectly. Consider the total payout for the loan including all fees and charges to work out the net outflow that you have to bear.

Title loan companies maintain complete confidentiality of the information that you share with them. It is a great way of unlocking the financial power of your car. Call on https://bayareatitleloans.com/ for your requirement of title loan and enjoy the best in class services that are unmatched in the industry while getting the most competitive loan offer.