In order to find out if auto title loans are right for you, knowing more about its nature and application process is essential.
Title loans, otherwise known as pink slip loans, are short term secured loans that are commonly taken out for situations that require quick cash. This type of loan is commonly used for paying off debts, especially in times when you come up short for overdue bills. At the same time, a title loan can also be used for medical emergencies. Here are three reasons why this type of loan is ideal for emergencies.
- It has a fast application process
Each type of loan has different requirements. Some have more complicated processes and borrowers are required to submit a long list of documents and proof of capability to pay. It could take weeks just to get a traditional loan approved. But because an auto title loan does not require as many documents and the lender does not need to base approval on a credit check, it is easier to have these loans approved.
- It is possible to get the money in as little as an hour
If a borrower has complete documentation, it won’t be a problem getting a loan approved. Once all the necessary requirements for a title loan have been submitted and the loan is signed and approved, it is possible to get the money in as little as an hour, or less.
- The car remains in the borrower’s possession
In an emergency, having a car is extremely helpful. Leaving it in someone else’s hands just to be approved for a loan can be troublesome, especially for a family with young children. The good thing about auto title loans is that the borrower won’t be required to give up the car at all. The only thing that the borrower has to give to the lender is the title of the car.