Whenever you are making a financial decision, it is imperative to know whether you qualify for those loans or not. And there are many forms of loans like payday loans and title loans for cars. However, the latter has the most perks and benefits because it is extremely easy to qualify for this loan.
Online title loans are simple loans which if you want to obtain you must have some vehicle under your name outright. Since there is no restriction on the type of vehicle, there’s a high probability that you own a car, truck, boat or motorbike or any vehicle that has some value. The vehicle you own should be “free and clear”. This entails that you do not owe money on it to anyone nor have it pledged as collateral on any other loan.
To get your loan, browse through the websites of online car title loans’ lenders and see for yourself which are the most reliable ones depending on the testimonials from other customers. When you apply for the loan, you need to bring along some documentation with you which includes your identification, evidence of your sources of income and the title papers of your vehicle. The title loan lender will appraise your car and go through the provided information to calculate the loan amount that they can lend you.
The single and primary factor that will determine the amount is the equity value of your car. Your income will only be considered to see if you can repay the loan and also to draw flexible contract terms for you with convenient payment schedules.
Moreover, things such as your credit standing will not be taken into consideration and the car title loan lender will not even make you undergo background checks to elongate and complicate the process. Instead, if your vehicle is approved, your loan will be granted right away within a span of 24 hours.
Your car acts as a form of guarantee for the lender that you will repay your loan. This simply means that if you default, the lender has recourse to sell off your car. However, this only happens in rare cases because mostly people realize that their tangible assets are secured and therefore, they pay back the loan installments on time. This is made all the more easier due to the expedient payment plans that the lenders come up with.
Thus, when considering title loans vs. payday loans, you will always go for the former because the latter along with other conventional lending options are difficult to qualify for!