No Credit Check Title Loans – Why It Is The Best Option For Borrowers
Borrowers use different methods to secure a loan. However, many of these methods will require you to go through a long, tiring paperwork process before the funds are approved. The good thing is that borrowers have many alternatives when it comes to requesting for a loan. When you are in urgent need of money to cater for emergencies, pay bills or even finance your business, a title loan that doesn’t require a credit check is the best option you have.
Title loans offer an easy and convenient way for borrowers to access instant cash. The loans can be handy for borrowers with bad credit which hinder them from getting loans in conventional institutions. By issuing your asset title as collateral, you can easily have your title loan approved within a few days. Some auto loan companies even approve your loan request within 24 hours. Lenders issue title loans from as little as $100. So what exactly are title loans and what is the procedure of having your loan approved?
Title loans are loans that will require you to issue an asset title as collateral. The main reasons for issuing your asset are:
- Good credit rating is not considered when applying for the loan
- The loans have a faster approval rate compared to other loan types
Applying for a title loan
The most common type of title loans is a car title loan. Here, borrowers are required to issue their vehicle title as collateral. Loan companies can lend up to 25% of the total value of your car and retain the car title until all repayments are made. You can either repay the loan in one single payment or repay it in monthly installments. If you default payments or fail pay back the loan on time, you risk losing your car. The loan can also be rolled over, which means that the loan term will increase and you will have to incur more on interest rates. One advantage of no credit check title loans is that you can still use your vehicle after taking out the loan. The auto loan company will only retain your car title as collateral. Title loans are considered as alternative lending because borrowers do not need to go through the same procedures followed by banks and other lending institutions to secure the loan.
Why go for a title loan?
The main reason why people request for title loans is to cater for unexpected expenses. Individuals who need funding for business expenses, bills and emergencies have the option of having their loan approved on time by issuing an asset as the guarantee for repayment. Most title loan lenders also allow borrowers to apply for the loans online, which means there’s no need to go to a physical location, as you can do it via the lender’s website.
How title loans work
For you to be eligible for no credit check title loans, you need to be above the age of 18. You also must have a high valued asset which can be your car, house or any other property under your name. If you issue your car as collateral, you have to present it for inspection and evaluation. Once you meet all the requirements for the loan, you can have the funds in your bank account as soon as the next business day. Usually, the maximum amount issued on a title loan is lower than the market value of your titled asset.
Why you need a title loan
While there is a wide range of loan options available to improve your financial situation, here are some of the reasons why title loans are the best option for you:
- A good credit score is not needed to qualify for a loan.
- The loan application process is fast and straightforward. You just need to fill out an application form and once the title loan company determines the value of your titled asset, you will be eligible for the loan amount depending on the asset value. Applying for a loan in a conventional institution can take days, or even weeks to be approved, but with a title loan, the cash is approved on the same day.
- You can still use your asset after your loan is approved
What you need to know before applying for a title loan
Maximum loan amount varies
Since title loans are meant for short-term funding, do not expect to be eligible for a loan amount that is 100% or more the value of your titled asset. Before issuing the loan, lenders will first consider the resale value of the asset. Most lenders issue up to 25% of the value of the titled asset, but you can also find lenders who are willing to offer you up to 75% of the asset resale value.
You must pay off a title loan immediately the repay date is due
A lot of the lenders require that repayment of the loan in a single payment is made after the loan matures. You also have the option of repaying the loan in monthly installments for a specified number of years. If you are not in a position to repay the loan at the end of the period, the title loan company can repossess your asset. You will also not be entitled to any profits that the lender makes after selling the asset.
Title loans can be helpful when you are put in a situation where you need money urgently. They can be the best alternative, especially for people who can issue an asset as collateral and do not qualify for a loan in financial institutions. Car title loans are one of the best ways to easily secure a loan. Using your vehicle title, you can easily have your funds approved within a few hours. It is, however, important that the loan is used for productive purposes, and don’t forget to repay the loan on time!