5 Key Advantages to Car Title Loans

Since the recent economic downturn, car title loans have become a popular way to obtain a loan. A car title loan is basically a short-term loan secured by your fully paid-off vehicle. The loan typically allows you to borrow up to 50% of the available equity in your vehicle, meaning you can receive a loan of up to $10,000. A growing number of people are choosing car title loans because of their many advantages.

Here are the five key advantages of car title loans:

1. Very short processing time
Car title loans are easy to obtain and the processing time is typically one day, which means that you will receive the cash on the same day that you make the application. This makes it one of the quickest and the most hassle-free loans; characteristics that people find very attractive. Contrast this with the days and even weeks it would take for banks to process a personal loan and you will understand why it is so popular.

2. Very little paperwork involved
Apart from your personal information and proof of income, most lenders do not require you to submit any other supporting documents. The application form is simple and free of the complexities often associated with bank loan forms. The absence of lengthy and daunting paperwork makes the loan very appealing to people who are not too keen on revealing every detail of their financial situation.

3. Credit check not required
Most creditors do not run a credit check, which is just what borrowers want. They are there in the first place because they don’t have the money and are unable to get a bank loan because of bad credit score. The absence of a credit check makes this a great benefit to people who have poor credit ratings.

4. The car is your collateral
Since the car you have paid off is used as collateral, you won’t have to lose any other assets if you are unable to pay back the loan as long as it can cover the loan you have taken. The lender will take the car, sell it and recoup their investment. However, before actually deciding to take possession of your car, they usually agree to give you a time extension (if you request) because they don’t really want the car; they want you to pay back the loan any way you can.

5. You can use your car even with the loan outstanding
You will be able to use the car even if your loan is outstanding so that you won’t have to worry about losing it if you are unable to pay it back on time. You will be able to use your car throughout the duration of your car title loan. This is what makes car title loans a great choice for busy people who need a loan fast.

At Fast Access Finance, we make the car title loan application process easy. Visit our online application form to get started today!