We all know how bank loan approval process goes and how much time it consumes. The entire loan process of banks is so tiring that the loan applicants have to wait for weeks if not months to know whether the loan is approved or not. This is one reason that people in need of quick money seldom goes to a bank for a loan instead they prefer other mediums that have quick loan approval process and also doesn’t require much paperwork.
Banks also do rigorous financial background check of the loan applicant before sanctioning a loan and if the loan applicant doesn’t meet the loan criteria on minutest of grounds the loan application is rejected instantly. So in bank loan process even after making so much efforts and filling so many details a loan applicant remains unsure whether the loan application will be approved or not. So not only it is a sheer waste of time and energy but the loan rejection probability is also very high making it hectic for the loan applicants to get a loan.
If compared with car title loans the bank loan process lags behind tremendously. There are many comparative factors where car title loan Los Angeles have an upper hand over bank loans. So let’s analyze the factors which clearly states why to prefer car title loans over bank loans:
Swift Loan Process: Unlike bank loan process the car title loan process is very swift. The loan applicant need not to wait for weeks to know whether the loan is approved or not. Car title loans doesn’t consider loans as a risk factor like banks and doesn’t do rigorous financial background check of the loan applicant. If the loan applicant qualifies for the loan the loan is approved within few hours. This all ease and high loan probability makes the car title loan process very swift.
No credit Score Required: Banks don’t consider a loan applicant who has a bad credit score or is a defaulter in the past. Banks consider loan as risk and thus doesn’t entertain any individual which they feel is unable to repay the loan amount. But in car title loan people with bad credit score can also qualify for the loan. This is because the loan is sanctioned based on the value of the car and not on the income stub of the loan applicant. The title of the car is kept as collateral and if the borrower fails to repay the loan on time the lender has the authority to put the vehicle on sale and recover the loan amount.
No Repayment Penalty: It’s always annoying when you are making a pre-payment of your bank loan and you are told to pay a pre-payment penalty. But in case of car title loans there is no penalty imposed on the borrower for making a pre-payment of loan. So in car title loans the borrower need not to arrange extra money to pay as penalty for making pre-payment of the loan. This is an added benefit with car title loans.