Title loans work in the sense that a borrower gives the title of a car, and this is placed as collateral against the amount provided by the creditor. The title of the property is temporarily taken over by the lender, and the owner repossesses it once the loan is cleared, taking into account the fact that they are short term, these loans accrue high interest rates.
• Lenders do not look into credit history, thus it can be very helpful to someone who has a poor credit score. The only factor taken into account is the condition of the asset(vehicle) being offered as collateral.
• One main advantage of these loans is that they do not take much time to process; you obtain the loan the same day, or a day after you apply.
• One can borrow small amounts that cannot be given by other lenders; it’s possible to get loans as little as $100.
• How you spend the money obtained is up to you, since there are no follow- ups or restrictions. All you need to do is to keep up with the payments which have to be done within a short period.
• There are no set guidelines on requirements that you need to meet. Once the car is inspected you are good to go.
• Has no impact on credit reports.
However, while looking to obtain these loans, it’s crucial to shop around so that you can get the amount you require at the lowest rates. Whenever you find yourself in a situation that obliges you to urgently get financial assistance, obtaining a these loans is a good way to go. They can help get your short term financial problems solved in a fast yet effective way.
Additionally, these loans are also a hassle-free process. Before the lender gives the loan, they first inspect the car, to see whether it matches up the amount you need. You need to provide your car title, fill in applications and get your car evaluated, after which you are given information on the amount you qualify for. You are also informed about your obligations as per the contract, as well as the terms. Once you have undergone the process, you will be given the loan, and you also are free to use your car as you proceed with the repayments. The evaluation might take a day or two, but eventually , you get the financial assistance you need. The loan you are provided lasts for a period of up to thirty days in most instances. As such, it would be good option to go for in cases where you need to clear emergency bills.
If you’re living in Atlanta, GA and are considering title loans and other financial services, click here.