Whenever you are in urgent need of money and someone suggests title loans for cars to you, you may ruminate over the fact as to why you should choose these over conventional payday loans? Most of the traditional lenders outline strict and rigid credit requirements which can discourage those who have suffered from past credit problems from applying. Even their application procedure can be terribly slow and they may take days to announce their decision. This can greatly impede your progress especially if you are in dire need of cash.
Moreover, if you get rejected after the whole process, it can be really disheartening. And you will have to start all over again when applying for another financial institution. You might assume that this only happens to those marred by bad credit but the harsh reality is that even those with a history of perfect credit can very much fall prey to this.
However, as far as the online title loans business is concerned, these long winding processes do not constitute any part of it. Therefore with these title loans, quick cash is at your immediate disposal. And by that I mean a span of one hour only!
The reason why these online car title loans’ lenders work so promptly and readily lend money to those who suffer from bad credit , is because these loans are secured. The borrower’s vehicle is placed as collateral with the lender. However, once the loan is repaid, the lender returns the title papers to the car back to the borrower.
The lien on the vehicle allows for flexible security and makes it easy for the lender to dispense cash to customers without taking their credit history into account. This also comes with a secondary benefit because it gives the borrowers an opportunity to add a positive credit reference which they can use in future when applying for other loans.
All the borrower needs to do is make their payments on time and repay according to the loan contract that was mutually agreed upon. Moreover, the borrower even has the incentive and the urge to repay these loans. This is because he has a constant reminder which motivates him to pay back the loans on time. It’s obvious that if a tangible asset such as your vehicle is secured with a third party, you would try your best not to default due to the potential consequences.
Therefore, with the flexible security inherent in these loans and the other advantages that come along with it, these auto title loans are your best option!