People often exhaust most of the options of borrowing money when they possess bad credit score. Credit score is a mathematical representation of an individual’s creditworthiness which helps lending companies to determine some parameters for qualifying the loan. A good credit score of borrower increases the chances of individual to get loan approval whereas bad credit increases risk rate involved hence reducing the chances of getting loan approval.
Car title loans Bakersfield could be great option for people who are in urgent need of cash as they do not determine credit score of borrower. Car title loan is simple and secured loan process with minimum of demands. It has been designed to provide financial aid to people who are in need of it.
How does the Car Title Loan work?
It is easier and faster to get a car title loan when you own a car that's paid off. The borrower is required to provide lender with clear and lien free vehicle title. The vehicle title of borrower is used as collateral in case of title loan and equity of the vehicle secures the amount of loan. The loan process is started when borrower fills the loan application form with all the information. Afterward, representative of the lending company review the requirements and inspects the condition of vehicle to determine its current market value. The amount of loan and repayment structure is then designed by lending company and provided to the borrower. If borrower agrees on provided terms and conditions along with finalized loan amount, time duration and interest rates imposed the loan is approved by representative of the lending company and lien is placed on original vehicle title which is then temporarily held by the lending company.
What are the benefits of title loan?
Title loan undoubtedly provides plethora of benefits to borrower, some of which includes
Easy loan process and quick access to cash
Title loan is well known among the borrower for the simple structure and straight forward processing. No loan product available in market is as simple and easy as title loan. The non-demanding nature of car title loan helps with quick processing and lending company ensures to provide borrower with instant access to cash once the loan is approved.
Affordable repayment structure
Title loan lenders are best known to design most affordable and convenient repayment structure for their borrower. A representative of lending company interacts with borrower in order to determine their current financial situation so that payment structure can be designed accordingly. However, in case borrower is not comfortable with the interest rate imposed they can negotiate with lender or consider refinancing the loan with some other reputed service in local area with comparatively lesser interest rate.
Borrower is free to use the vehicle
The title of vehicle is used as collateral; hence lender cannot physically possess the vehicle of borrower rather they are only allowed to hold vehicle title with lien placed on it until the repayment of loan.
In a nutshell, car title loan is a savior for people who are in urgent need of cash flow and owns their car completely.
Haris is a blogger who loves to write about latest marketing trends, finance, start-ups, business etc.