Credit risk assessment is what banks rely on in segregating the good customers from those that carry bad debts and poor ratings who are perceived to be a higher risk in all types of lending. This is the main reason why large sections of the population are denied their basic credit needs by the banks.
For high risk customers the only option is loans carrying highest rates of interest or to go bust. Fortunately, loans with car title do not place such obligations on its borrowers and people continue to benefit from its wider and unrestricted coverage.
Six valid reasons differentiate car title loans and bank loans and customers are benefiting by the superiority of title loans
Banks are generally biased against short duration non collateralized loans as they are considered riskier. Vehicle title loans encourage small loans $2,500 and above based on the simple collateral of the customer’s car.
- Banks prefer structured payments that take a longer duration (three years and above up to ten years) to clear. Cash title loans keep their repayment tenure shorter so that customers are free of debt faster.
- Banks load their borrowers with higher interest, more penalties and higher fees which inflate the loan outstanding unreasonably. Loans with car title levy reasonable rates and ensure that repayments are structured so as not to stress a borrower’s income level at any time.
- In bank loans borrowers actually end up paying back almost three times what they initially borrowed but this will never be the case with auto collateral loans which ensure that the loan is repaid earlier. Title loans will never levy prepayment charges to a customer who prepays the loan well before its final payment deadline.
- In loans with car title the car is the sole collateral and no other asset is touched by the title lender unlike banks that make you pledge your home for just about any loan they approve.
- Where car title loans score is in their faster delivery of cash. Banks weigh you down with tons of paperwork and there is little chance of getting a speedy disbursal of cash in an emergency.
Overall, vehicle title loans guarantee a hassle free journey to ready cash that no bank or payday lender can match. The entire focus of the title lender is to see to it that the customer is not inconvenienced in any manner. The fact that initial enquiries can be conducted by any customer online and he can determine his eligibility in split seconds is a positive factor favoring title loans. Finding a reputable lender all lies within the reviews. Try to engage in asking questions to other commenter’s to find out what the process is really like and see first hand how a lender can be without first giving them your business. A simple examination of their process is all that’s is necessary.
One of the foremost Californian companies offering loans with car title is Title Loans Express; it approves cash loans for title within 15 minutes regardless of your credit status or bad credit history. They consistently offer the lowest rates in California and repayment flexibility that makes them the most popular title lender in the industry. If you wish to cash the equity in your car, truck, boat, motorcycle or any other vehicle login to for service that is super-fast, supportive, and trustworthy.