When in need of quick cash, a bad credit score can be a real big drawback. Most of the individuals get a rejection from the traditional loan process which includes banks and credit unions as they consider the credit score of the individual as an important factor to be eligible for a loan process. In the financial sector, the credit score of the individual defines the credit history or creditworthiness of the individual which helps the lender to decide on the repayment ability of the borrower. Moreover, the traditional loan process is time-consuming, requires hefty paperwork and there is no guarantee that one can easily get through it. Therefore, one cannot rely on the traditional loan process, especially during emergency situations.
The car title loan in such situation is the best way to get hands on some fast cash with no credit check and minimal income verification. The car title loan is a pretty straightforward process which provides the borrower with instant cash without much stress. In the case of car title loan, the lending company evaluates the price of your car based on its worth or market values and a percentage of vehicle’s worth is provided to the borrower as the loan amount. The lending company temporarily holds the vehicle title of the borrower with a lien placed on it but doesn’t physically possess the vehicle. With car title loan the borrower is free to use the vehicle while making monthly payments against the loan. Unlike other quick loan process, the car title loan provides the borrower worth an affordable and flexible loan rates as they use the vehicle title of the lender as the collateral. The use of collateral reduces the risk rate, hence, making the title loan process much easy, simple and quick in comparison to the other processes.
Who qualifies for car title loan?
Since the car title loan requires the title of the vehicle, the individual who owns a vehicle completely and the title is lien free can easily qualify for the loan process. As the title loan is based on the equity built on the car, most of the title loan companies require the borrower to own the car outright. If someone owes money on a car loan, it means the car's title is still in the hands of the bank, and it cannot be used as collateral for the title loan. Moreover, the borrower must attend the legal age to qualify for the car title loan process.
One can get up to $50,000 with the simple car title loan Los Angeles process depending on the significance of the vehicle. The expert’s states, the better the condition of the car, the higher are the chances of getting a good deal. The repayment structure of the car title loan is really simple, flexible and affordable which allows the borrower to easily repay it during the provided time interval. Car title loan, if strategies properly can be one of the best options to smoothly get over the financial crisis.