When you think of a traditional bank, you might also think of bank fees. Getting a loan approval from a traditional banking loan system is a tedious task. It requires plenty of time, hundreds of documents, tens of referrals and signature and still there is no approval guarantee. The traditional bank loan approval method requires 1 month to 3 months and 70% of the small businessman get rejected. The process requires a number of inquiries, verification and the worst thing is if you have a bad credit score, you will be asked to wait for a loan until you improve your credit score.
Hence, auto title loans are a savior for the people who are looking for a simple, easy and quick loan process for the emergency situations like medical bill and financial crisis due to sudden job loss or prolong illness. It eases your stress and gives you peace of mind knowing that you can have the money that you need.
The lender initially inspects your car and then estimates the value of the car. The amount of money you are loaned depends completely on the value and condition of the car. For car title loan you must have some reliable source of income. A vehicle which you own with the vehicle title registered on your name. The vehicle amount must be paid off and driver’s license (with the same name as on vehicle title). After being approved, you will have to make regular payments. You can also pay off the entire amount early or if you fail to pay off the amount you may lose your car. Either you can negotiate with the lender or he will then keep your vehicle or sell it to recover the principal amount and interest.
The auto title loan is the simplest and easiest loan type. They don’t check credit score because all they require is the car to be owned outright. They provide loans worth 25% to 50% of the car’s value. Some of the lenders ask borrowers to leave a duplicate key of the vehicle or install a GPS tracker or a remote immobilizer, all of which make cars easier to repossess if you fail to pay-off the loan amount. Moreover, it requires less paperwork, is easy to approve and is a less time-consuming process.
Auto title loan doesn’t depend on your credit but on the value of your vehicle. Any of the car title loan lenders will not ask for your credit score. Even if you have a good credit score, you won’t get any privilege nor will you be rejected for having a bad credit score. The auto-title loan is also known as no credit check loan. To complete the loan application form, you’ll need the following information:
- Your details: Your full name, zip code and telephone number.
- Vehicle details: The age, make, model, body style and a mileage estimate for the vehicle you’ll be submitting for collateral.
Unlike a traditional loan, auto loans have no pre-payment penalty and no hidden costs. You can easily pay off your loan anytime. It is a simple interest loan and you will only get charged interest on the principal balance of your loan, unlike compound interest loan that charges interest on your principal balance plus any unpaid interest.