Car title loans is not something that is newly introduced but it has been operational since many decades. People in the past utilized it to get quick money for getting their work done and till date people are opting for it to do many of their work that require quick money. So what actually it is that car title loan has not lost its charm over these years because if you will look at the past there were many financial mediums that used to provide money to people in need but these mediums fade away with time. But if you look at car title loan it is still going strong like in the past. So what are the factors that has kept it operational despite so many turn around that has happened in the last few decades.
Well car title loans has many factors that contributed to its success. So let’s quickly look at some of the factors:
Loan on the title of the car: The loan is generally given on the title of the car which the lender keeps as collateral so that if the borrower doesn’t pay the loan on time he can put the car on sale to recover the loan amount. This is a straight and transparent process where the loan applicant has to fulfill some conditions and he can get the loan based on the value of his car. There is no hidden clauses and no malpractice involved in it.
Minimal Paperwork: Another factor that has kept car title loans survived for so long is that since its first operations the paperwork is kept minimal. The reason is that lengthy paperwork makes the loan process lengthy. So if a loan applicant applies for a loan all he has to present as proof are some documents like car title on his name, no car lien, government issues identities, insurance details and some other details and he can qualify for the loan.
No Credit History Required: This is another factor that has contributed in car title loans survival for so long. Even if a person has bad credit he can still qualify for the car title loans California. This is because car title loan concept is all about giving loan on the value of the car not by verifying income stub and credit history of the loan applicant. If the borrower is unable to repay the loan amount the lender has the right to put the car on sale to recover his loan amount. This is very simple and doesn’t require checking financial background of the borrower.
Refinancing Option Available: The loan applicant can still apply for a car title loan if he already has a pre-existing loan on his car. The car title loan provider can very easily find a refinancing solution for the loan applicant.
High Loan Amount: The loan amount sanctioned in car title loans is highest among the non-conventional mediums. The loan amount can vary from $2510 to $50,000 which is enough to meet any kind of cash crunch situation.
Flexible payment Option: Another thing that has contributed in car title loans survival is its flexible payment option process. The loan amount can be repaid back in maximum 36 months and the rate of interest is also very low. The borrower can also personalize his loan repayment options by discussing it with the lender.