Hilary was in dire straits! She needed to visit her ailing daughter in a foreign country and was in urgent need of a cash loan. She had applied for a personal loan, but the bank was taking far too long to process it and so far, they were not even certain that it would be approved. Besides cash, if there was something else, that Hilary was really short of right now, it was time! In a quandary and unable to find a way out, she sought out her neighbor’s opinion.
“What do you see on that highway?” Mr. Hopkins, her neighbor, asked her when she went to him. “I see cars and other vehicles driving by!” she replied, wondering what it had to do with her problem. “Well, Hilary, when I look that way, all I see is ‘cash’ driving by on that highway!” he told her smiling. Being the owner of a company, that gave out cash loans against car titles, Mr. Hopkins, couldn’t be more right! Fortunately, for Hilary, her newly purchased car came in use, when she needed it the most. Not only did she get the loan amount she required in cash against it, but also got it within the same day!
Car Title Loans-Simply Explained
If you are wondering, what a car title cash loan is, ‘Investopedia’ defines it in the following words- “A short-term loan in which the borrower’s car title is used as collateral. The borrower must be the lien holder (i.e. own the car outright). Loans are usually for less than 30 days. If the loan is not repaid, the lender can take ownership of the car and sell it to recoup the loan amount. ” So, to avail a cash loan against your car, you are required to possess a clear car title. As long as you have the necessary documents to prove, that you are the sole legal owner of your car, you become eligible to get a quick cash loan, against your car title.
Why Do People Opt For Cash Loans against Car Titles
There are a number of reasons why an individual requiring quick cash, would opt for a car title loan. While the primary one of course, is that he/she does not have any other source of getting the dough he/she needs, which may be due to not having a credit card or a bank loan or adequate savings; there are plenty of other reasons too! The process involved in getting a cash loan against a car title, is extremely simple. All that a customer needs to do is, fill in an application form, submit the necessary documents, have his/her car evaluated and get the necessary cash in hand! The application form for a quick cash car title loan can be filled out online or at the office of the car title loan providing company. The documents required, usually include a photo identity proof, a residence proof, a proof of income and a clear title of your vehicle.
How Do Car Title Loans Get Processed So Quickly
Getting cash against your car title is usually not a time taking process. It involves driving down your car to the title loan company office, having its financial value assessed, your documents verified, and your loan amount, will be approved within a day or two. Some companies also offer to process cash title loans within hours or even less! The reason why car title loans can be processed this quickly, is because, these do not require any credit checks to be performed. This means that, even if an individual has an unfavorable credit history, he can still avail this quick and easy cash loan.
Eliminating credit checks, not only reduces the time taken to process the loan, but also leads to a high rate of approvals, unlike in the case of bank loans. However, the best part about a title loan is that after getting the required cash in your hand, you get to drive home with your car. The only thing that you are asked to leave behind is your car title documents. And, you can have them back too, when you pay back your title loan amount!
Precautions When Taking Title Loans
While a title cash loan comes quickly, easily and conveniently, it will work in your favor, only if you take certain precautions. Car title loans are secured loans, in which your car is the collateral. The risks involved in this loan transaction are that, if by any chance you are unable to pay your loan amount, you will lose your car! And, sadly, the financial worth of your car will obviously be more than the loan amount you borrowed. Moreover, you need to pay attention to the interest being charged by title loan companies; so that you know exactly how much your short term and long term payments will amount to. The best approach to handling car title loans however is paying them off as quickly, as possible!
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This article was written by Melinda. Edwards. Filw, a financial writer, who believes, that availing a cash loan against your car, is advisable if you need cash fast.