A car title loan is also referred to as an auto title loan. It is a short-term loan that requires leaving your car title with a lender in exchange for the cash that you will need. The car title in this instance, functions as collateral. Taking some short term loans may require that you give up your car in exchange for the loan but car title loans are different. With car title loans, you are free to continue driving your car even when you are in the process of paying back your loan. No credit check is carried out when the borrower applies for these loans and thus his approval is instant whether credit score is good or bad.
Most times your loan approval could be as fast as 30 minutes to an hour and this makes the loans ideal for emergency situations. Approval means that your loan is good to go and that your money is ready for the taking. You can also pay your bills before the deadline. These are just some salient points that must be known if you are interested in taking a car title loan. It has helped people for years and there is no doubt it will still be popular in the future. It has the advantage of not verifying your income and so, if you are a business owner with a short term cash flow issue, car title loan offers a way around the difficulty if used right and promptly as well. The major advantage still is the ability to obtain cash fast. When stranded or in a difficult situation, your biggest need mostly is to be able to bridge until you are back on your feet again. In this respect, it can be a true life saver.
There are many uses that a car title loan can fill. For example, it can be used to pay unexpected medical bills, pay for various grocery bills, immediate utility bills, pay out other loans (thereby mending your credit score) and expenses that might be pressing. Paying advanced amounts on time ensures that your poor credit score is mended and at the same time saving your car from repossession. This also implies that any time you are in dire need of quick cash, the lender would be glad to do business with you. A good lender would have your interest at heart and offer you flexible payment terms as well as complete confidentiality. When applying online make sure you are using a secure interface especially when submitting sensitive personal information. Most will allow you apply on phone but it makes it difficult for a person with bad credit score to borrow money and if they find a lender who would give them the money, it will cost more money in interest to borrow the money.
One of the biggest benefits of car title loan is that it is quick and convenient. The process is easy and fast and can be completed in as fast as 10 minutes. Once the form is submitted, the cash can be received the same day!