How to Get Car Title Loans with No Credit Risk: 10 Easy Steps to Know
Zafar Iqbal
Car title loans are a form of financial assistance provided to borrowers to meet their financial requirements. The benefits of car title loans include quick approval and disbursement, an easy repayment schedule, and no collateral requirement.
Ten Easy Steps for Car Title Loans
1. Ensure that you have all the required documents such as-
· Valid driver’s license
· Vehicle Registration Certificate (VRC)
· Proof of your current address
2. Once you have assembled all your essential documents, contact the customer service number to check if they offer car title loans and what interest rates they charge to know which car title loan company offers the lowest interest rates for car title loans in respective states. Things to keep in mind are:
– Compare interest rates from at least three different lenders before selecting the best one
– The interest rates for car title loans can vary considerably, so it is important that you compare and contrast the rates before selecting a lender
3. Once you have selected the lender, provide them with the required documents mentioned above.
– The car title loan company will do a quick check on the information you have provided and if it is found to be correct, they will offer you a loan amount based on the value of your vehicle
4. Once the loan amount is approved, the lender will provide you with the funds, which can be accessed through a check or wire transfer
– the funds are sent the same day you apply for car title loans.
5. While repaying your loan, you must provide the correct details, so there are no delays in processing your repayments
6. As soon as you have repaid your loan amount in full, contact the customer service number to inform them that you would like to close the account and release any unused funds that may be deposited into the account
7. The lender will then process your request by verifying all documents provided by you at the time of applying for car title loans along with other information such as-
· Your current address
· Vehicle registration number (VRN)
8. Once the above information has been verified, they will make sure that the title has been successfully transferred to the lender, and once it is done, they will release the funds to you
9. If at any time you encounter financial difficulties and are unable to make a payment on your car title loan, immediately contact the customer service number for assistance
10. last but not least, always remember that car title loans are short-term loans and should only be used as a last resort when other options have been exhausted.
Compared to other types of loans such as payday loans, personal loans, or even credit cards, car title loans offer several advantages to borrowers.
Benefits of car title loans
1. Quick Approval And Disment:
-One of the biggest benefits of car title loans is that the approval and disbursement process is very quick.
– Most lenders will approve car title loans within minutes of submitting an application, and the funds are usually disbursed on the same day.
2. Easy Repayment Schedule:
– Car title loans come with a very flexible repayment schedule which allows borrowers to repay their loan in smaller instalments over a longer period.
– There are no prepayment penalties, so borrowers can pay off their loan amount at any time without incurring any additional charges.
3. No Collateral Requirement:
– One of the most significant benefits of car title loans is that there is no collateral.
– This means that even if you do not own your vehicle, you can still apply for car title loans
4. Rehabilitate Your Credit History:
-Car title loans are considered unsecured loans so the repayment is not dependent on the condition of your vehicle or other property.
– This means that even if you cease to drive your car, you will still be able to repay your loan amount in full and build up your credit score once again by making timely payments on time.
5. Instant Cash Available To Borrowers:
– Car title loans are short-term bad credit personal loans that come with a rapid approval process, and borrowers can receive cash in their bank accounts within 24 hours of applying for car title loans.
6. Low-Interest Rates and Fees:
– Car title loans come with some of the lowest interest rates and fees in the market compared to other types of loans.
7. No Prepayment Penalty:
– One of the best features of car title loans is that there is no prepayment penalty. Borrowers can repay their loan amount at any time without incurring any additional charges.
8. Keep Your Car:
– Unlike other types of loans, borrowers do not have to surrender their car or other property as collateral when applying for car title loans.
– This means that you can continue to drive your car even after taking out a loan with a lender.
9. Improve Your Credit Score:
– Making timely payments on car title loans goes a long way in improving your credit score and can help you qualify for other types of loans in the future.
– This will also help you get better deals and negotiate your payment terms when borrowing money in the future.
10. Get rid of Debt:
– Car title loans are unsecured personal loans and can be used to get rid of bad debts such as credit card dues, unpaid utility bills etc.
– This is one of the most significant benefits of car title loans which allows borrowers to repay their loan amount without paying any additional fees.
11. Lower Monthly Payments:
– Borrowers can enjoy lower monthly payments compared to other types of loans because car title loans offer a fixed payment schedule for a fixed term based on the vehicle value and the borrower’s ability to repay the loan in instalments over time.
– Car title loans also come with very low-interest rates and fees which can help borrowers save a lot of money in repayment charges.
12. No Hidden Charges:
– Unlike payday or cash advance loans, there are no hidden charges associated with car title loans.
13. Easy to Qualify:
– Car title loans are available to borrowers who have a good credit score as well as those who have a bad credit score.
– There is no need for collateral, and the approval process is rapid, so even those who other lenders have rejected can qualify for car title loans.
14. Get Cash In Your Bank Account Within Hours:
– One of the best features of car title loans is that borrowers can get cash in their bank account within hours of applying.
15. Use The Funds For Any Purpose:
– Borrowers can use the funds from car title loans for any purpose they choose, such as consolidating debt, paying medical bills, home repairs, etc.
– This flexibility is one of the main reasons car title loans are so popular among borrowers who need access to quick cash.
Disadvantages of Car Title Loans
– Car title loans come with some of the biggest benefits compared to other types of loans, but they also come with some disadvantages, and borrowers should be aware of these before applying for car title loans.
1. Interest Rates:
-As we have already mentioned above, car title loans come with very low-interest rates compared to other types of bad credit personal loans such as payday or cash advance loans. However, borrowers must look at all their options before taking a loan because there are even lower interest rate options available in the market when compared to car title loans.
2. Fees:
-Borrowers will not incur any prepayment penalties or late payment fees on their car title loans, but they will be required to pay a fee of up to 20% of the loan amount if their car is repossessed.
3. Secure your Property:
-When you take out any personal loan, it is always better to secure your property as collateral. If you default on your monthly payments, the lender can take possession of your vehicle and sell it at an auction.
4. No Stop Payment Option:
-Car title loans do not offer a stop payment option once borrowers sign their contracts or make their first installment payment, so if for some reason they are unable to repay the loan amount on time, they cannot stop making further payments until they have repaid the entire.
5. Repayment Duration:
-The repayment duration for car title loans is usually between 12 and 36 months which is much longer than the repayment duration for other types of bad credit personal loans.
Alternative Solutions for When Car Title Loans Aren’t an Option
-There are times when borrowers do not have a car title to use as collateral for a car title loan or when they do not meet the eligibility requirements for car title loans.
Solutions
In such cases, borrowers can consider the following alternative solutions:
1. Personal Loans from Banks or Credit Unions:
-Banks and credit unions offer personal loans to borrowers with a good credit score and these loans come with lower interest rates and longer repayment periods than car title loans.
2. Payday Loans or Cash Advance Loans:
-Payday and cash advance loans are available to borrowers who have a bad credit score, and these loans come with very high-interest rates.
3. Peer-to-Peer Lending:
-Peer-to-peer lending is a relatively new concept in India, and it offers borrowers a platform to secure personal loans from individuals rather than large financial institutions.
4. Home Equity Loans:
-Home equity loans are available to borrowers who own a home and these loans come with lower interest rates than personal loans or car title loans.
5. Credit Cards:
-Credit cards are available to borrowers who have a good or excellent credit score, and they offer some of the lowest interest rates in the market.
6. Rent to Own:
-Rent to own is a relatively new concept in India. It allows borrowers to rent items such as appliances, furniture etc., and pay for them over an extended period.
7. Online Lenders:
-Online lenders offer personal loans to borrowers with bad credit and these loans come with high interest rates.
8. Cash Advances:
-Cash advances are small loans available to borrowers who have a high credit limit on their credit card and these loans come with very high interest rates.
9. Debt Consolidation Loans:
-Debt consolidation loans are available to borrowers who have multiple debts, and these loans offer lower interest rates and more extended repayment periods than payday or cash advance loans.
10. Personal Loans from Friends or Family:
-Borrowers can also ask friends or family members for a personal loan, and in most cases, they will be able to get a lower interest rate than what is available from banks or credit unions.
Conclusion:
Car title loans are a great option for borrowers who need a short-term loan and want to avoid the hassles of going through a bank or credit union.
However, it is essential to remember that car title loans come with high interest rates and shorter repayment periods than other personal loans.
Borrowers should also consider alternative solutions such as payday or cash advance loans, personal loans from banks or credit unions, peer-to-peer lending, home equity loans, credit cards, and rent-to-own before taking out a car title loan.
