Car Title Loans Are an Alternative Solution for Obtaining Cash Quickly
There has been a significant increase in the popularity of obtaining a car title loan, in the last few years, mainly due to the rough economic times faced by nearly every American. While traditional loans are still available, from credit unions and banking institutions, most of them have significantly tightened the requirements for obtaining a loan, making it nearly impossible for most families to qualify.
Many families struggling to make ends meet now find that their credit ratings have significantly dropped because the value of their home is either underwater, or about to be. The devaluation of their home has made it impossible to obtain a home equity loan, simply because it has lost all of its equity. Without the possibility of obtaining additional credit through credit cards or other lending institutions, families now see the advantage of turning to lenders that issue car title loans.
Other Alternatives
An auto title loan can be significantly more flexible than borrowing money through other options. Individuals obtaining money through payday loan lenders are highly restricted on the amount of money they can borrow. Personal loans are usually unsecured and require a nearly perfect credit score, and are typically limited to small amounts of cash.
Benefits of Car Title Loans – North York, Ontario
In the lending world, a car title loan is nothing more than a quick way to obtain a short-term loan using the collateral of your car or truck to secure the debt. In exchange for a predetermined amount of funds, the borrower agrees to repay the debt over a specified amount of time, usually up to two years. There are significant benefits to obtaining a car title loan that include:
- Easy and Quick Cash – Obtaining a car title loan is an easy process that provides a cash for the loan amount quickly. Based on the company, approval times will vary. However, customers generally have their borrowed funds within 2 to 3 days.
- No Credit Check – Nearly every car title loan lender determines the ability of the customer to repay based on current income. Most do not perform a background or credit check, allowing those with poor credit scores and bad credit histories to borrow money against the value of their vehicle.
- Little Documentation Required – Aside from providing proof of income, and ownership on the vehicle, customers are not required to offer extensive documentation. The lender will run a lien check against the title of the vehicle, along with determining its ownership.
- Maintain Vehicle Possession – During the time that the debt is being repaid, up to two years, the borrower will be allowed to maintain possession of their vehicle. Aside from providing a set of keys to the car or truck to the lenders, the borrower can use his or her vehicle as they normally would.
Obtaining a car title loan is the easiest way to acquire a substantial amount of cash quickly. However, it is imperative to always borrow money responsibly. Car title loans work well for families struggling with financial situations, and offer an effective alternative solution for obtaining a short-term loan.