The loan is a sum of money people borrow from bank, individual or financial institutes by providing some collateral to secure the loan repayment. The lender provides the borrower with the interest rate and time period. Most of the traditional loan processes are time-consuming as the lender perform various verification and background check. Most of the loan process nowadays use the credit score as a parameter to sanction the loan. A person who fails to maintain a good credit score or has no credit score is left with no option. But with loan processes like car title loan, an individual with no or low credit score can also borrow a loan.
Emergencies like car repairs or certain medical conditions just can’t wait till the next paycheck. The car title loan works as a savior for the people in a financial crunch or in emergency need of cash. The car title loan has a quick, easy and simple process. An individual doesn’t have to worry about qualifying with bad credit because he/she can easily get title loans with no credit check. Yes, that’s right; it’s possible to qualify without a credit check. Since the title loans are secured using the car title of the borrower’s vehicle the lenders thus skip the credit checks. With a good condition vehicle, the individual can get the loan amount quickly and efficiently.
What is a car title loan?
Auto title loans provide an individual with cash secured against the title of a vehicle. This added security makes the auto title loan process easy and quick and also allows the lender to offer a significantly lower interest rate to the borrower, regardless of a current credit rating or past bankruptcies. Most of the auto title loan companies provide online application and the online process is considered more convenient and secure. It helps the company to make a quick decision and therefore, providing borrowers with the much needed money as soon as possible without charging outrageous interest rates.
What are the eligibility criteria for a car title loan?
Unlike traditional loan process, the car title loan doesn’t require plenty of paperwork and the borrower’s financial background check. To qualify, borrowers must be at least 18 years of age, they must own a car worth at least $2500, and the car used as collateral can be 10 years old or less. The major requirement of the car title loan includes a clean and debt free vehicle in good condition. The vehicle title must be on the name of the loan borrower and other documents include borrower’s driver’s license and a proof of regular income source. The lender looks for the market value of the vehicle and accordingly finalizes the loan amount.
Loans that don’t require a credit check can be found easily but the hardest part is figuring out which one is the best. The amount of the loans vary from few thousand to up to $50,000 depending on various parameters. If you’re looking to get some money quickly then car title loan can be the best loan process to fulfill your emergency needs.