Emergencies and hard times are always uncalled for regardless of how financially stable a person is. Sometimes, prompt financial aid may be needed, and when all other alternatives fail, if you happen to be a car owner you can count yourself lucky since you may be eligible for a car title loan. Car title loans are generous amount of money, up to USD25,000, that car owners can get on credit to repay over a loan term ranging between one and four years. In exchange for the money received and for collateral purposes, the car owner is required to give the lender the car’s title.
Proper documentation is required to process the loan since the car title loan process involves a very valuable asset. The lender requires proper documentation to make sure that they are dealing with trustworthy people of legal age, who are able to repay the loan. The documents most lenders require applicants to produce are; confirmed photos of the vehicle, the actual application, valid government issued ID and the vehicle’s title. It is worth noting that sending the lender valid documents and current pictures of the vehicle does not guarantee a loan. Most lenders prioritise vehicles less than 10 years old and with less than 200,000 clicks on them. In some instances, lenders may require a video of the vehicle’s condition and the odometer for further proof. Through the requested proof, lenders are able to determine how much an applicant should receive for the vehicle depending on its value, model and condition.
Once all the requested documents have been approved and the car has been evaluated and inspected, the requested loan amount is sent to the applicant in exchange for the vehicle’s title. Nowadays, many people prefer car title loans since the process is very simple and straightforward and they are able to access credit in a relatively short time. During the period the loan is overdue, a loan applicant should not worry about not using his/her vehicle since they will still be in possession of it. Unless loan payment is defaulted, the car won’t be taken away. Arguably, the best advantage of getting a car title loan is the ability to continue paying the loan amount while driving the vehicle at your own discretion.
If you have ever tried applying for a loan, then you may be aware that good credit score heavily influences your ability to access a loan. With car title loans however, credit score is not required to be excellent. In fact, most car title loan lenders never assess the credit scores of applicants.