Like you don’t buy anything unpurposely then why to opt for a loan that doesn’t fulfill the purpose for which you have opted for it. The statement to clarify here is that loan are of many types but not all of them fit your requirement. There are many instances where people have taken a loan without making a second choice and regretted their decision in the end. The best advice to get a loan is to first analyze what your requirement is. If you require little amount in a loan then you need not to opt for a personal loan that has high interest rate or if you require a car loan it must not be more than 5 years duration because then you would be paying a lot of your hard earned money as interest to the car loan company.

So you have to remember that there is a lot of loan type to meet specific requirement so you must be careful in selecting the loan type. Not many people are familiar with car title loans because the only thing that comes to their mind when they think of loan is banks and big financial institutions. Car title loan is into operation since many decades but people are not very much aware of it because it is not the traditional medium to get a loan.

But it doesn’t mean that just because it is not the conventional medium to get a loan it must have some flaws. Car title loans are very transparent and doesn’t involve malpractice. Let’s go through some points that clearly states why to opt for car title loan in comparison to other loan types.

Car title loans are super quick: If you have taken a loan (not payday loan) you must be knowing that the loan approval process is mostly very lengthy. This is because every financial institution does a rigorous analysis of the financial background of the borrower to know his repayment capability. But in car title loan minimal financial analysis of the borrower is done and this makes the process super quick. Once the loan applicant meets all the terms and conditions the loan is sanctioned within few hours.

Car Title Loans Have Less Paperwork: When you opt for a car title loan you need not to arrange bundles of documents. Instead the only papers that are required are car title details, insurance details, no lien holder details, driving license, address proof, income stub and some other minor details. Once these documents are verified the vehicle is inspected to know its current value because based on the value of the car the loan is sanctioned.

Bad Credit Score is Not Considered: This is one benefit you won’t find with other financial institutions. People with bad credit score are not entertained by banks and private lenders but in case of car title loans an individual with bad credit score can also qualify for the loan. This is because in car title loan the loan is sanctioned based on the value of the vehicle and not on the credit history of borrower. If the borrower fails to pay the loan amount the lender as agreed in the agreement puts the car on sale and recover the loan amount.

Author's Bio: 

Haris is a blogger who loves to write about latest marketing trends, finance, start-ups, business etc.