Whenever you have some financial needs, then you start tapping on the best financial solutions. The two main options you can make the most from the fast title loans or traditional car loans. It’s time to know why people are going only with the former option.
Traditional Car Loan Vs. Modern Car Title Loan
You need to clear at this point that both options are categorized under a secured loan. You use your car or its title as collateral for obtaining a loan. However, certain elements make a fast title loan as the best financial choice for a person.
Less Paper Work – Consider getting a loan from a traditional channel, aka bank, and you start imaging about all those documents that you must take there. Obtaining a loan with a car title is pretty convenient, though, because you don’t have to arrange many documents. The first document is the original lien-free car title, and the second document is proof of income. The purpose of getting this proof is to get an understanding of the debt-to-income ratio. Every lender tries to play safe. Therefore, he is interested to know whether you can manage monthly loan payment or not. You may be surprised to know that many lenders are ready to give you a loan amount against your car title, even when you are unemployed.
Loan Approval Speed – Everyone knows the frustration involved with the traditional loan. You will have to wait for weeks to get the loan’s approval, even when you meet all the requirements. Bank doesn’t grant loans quickly. They take time, and you have to show some understanding of ins and out of the loan approval process. What if you can’t wait for that much? In case of immediate cash needs, the fast title loans work as the great loan solutions for the people. You can expect to get the loan amount on the same day if you pick the best title loan, provider.
No Need of Cosigners – If you don’t have a good credit rating and score, then it’s when you start searching for a consigner, and finding the one isn’t that easy. Bank asks for a consigner, so when you cannot pay for the loan amount, that person will pay the amount you owed to the bank. However, fast title loans don’t demand any cosigner. The lender relies only on the collateral in case of default risk.
No More Credit Checks – In a traditional loan, your creditworthiness plays a pivotal role. Bank will run a credit check to get an idea about your credit score. Your creditworthiness will decide whether the car loan will get approval or not. Contrary to this, fast title loans don’t require a credit check. They have little or no impact on your credit score and rating. Regardless of your credit score, a lender is there to assist you. It means that your bad credit won’t be a road blocker for you.
People are going with fast title loans as they can avoid the hassle of traditional loans with it. There is no need to go through loan approval anxiety, aka waiting to get a loan approval call from a conventional lender.