A Look at Why Car Title Loans Are Rising In Popularity

The present economic conditions have forced many people into financial difficulties. Medical emergencies, rising prices and layoffs can empty a savings account overnight. Sometimes, these conditions result in the need for quick cash. Shopping for faster turnaround times and better interest rates has made car title loans more popular than ever. You don’t need to give up your car and you can get the funds they need at a fair price. The security provided helps to keep approval rates high and interest rates low. Understanding and comparing different sources of funds allows borrowers to get bigger cash at a lower price.

Second Mortgages and Car Title Loans

Mortgages are secured by the land and house bought with the mortgage. If payments are not made, the bank will take the land or house as payment. This high level of security allows banks to charge low-interest rates on this secured type of credit. Car title loans work the same way. They reduce the risk to the lender by making use of the car as collateral. The lower risk translates into lower interest rates. The main difference between second mortgages and car title loans is that most banks are not willing to give out second mortgages as a result of the current market. Equity loans on car titles are easier to get.

The Problem with Cash Advances

Cash advances can be fast, but they come at a high price. Credit card companies charge higher interest rates and fees for cash advances. Many cardholders are not aware that payments are applied to purchases first, which means cash advances are paid last, and the higher interest rate continues to add to the balance due. Payday advance firms charge high-interest rates and often require membership fees for the smallest loan amount. Calculated over a year, the annual percentage interest rate can be in thousands. Equity loans on car titles offer low rates while providing the same fast approval time.

Applying Online

Applying online for car title loans is a very easy process. Instead of spending time waiting in line at a bank only to be turned down, loans for car titles can be applied from the convenience of your home. Applicants can apply online, and the process is 100% electronic. Approval can occur as fast as an hour, and the funds are often wired to a bank account on the same business day. Most other lenders require driving, waiting in a lobby, standing in line, countless forms and documents. To apply online, all you need to have are these items:

  1. Driver’s license
  2. Clear auto title
  3. Proof of insurance
  4. Social Security card
  5. Most recent paycheck stub
  6. Current mortgage statement or lease
  7. Current home phone and utility bill

With a secure website, borrowers can apply for car title loans from the comfort of their home. The equity in your car removes most of the risk. Therefore, approval is better than other lines of credit.

Driving Toward a Better Future

No one can afford to live above their means for a long time. Car title loans can provide your family with the cash needed without taking the family car. Cars are necessary tools in today’s society. Traveling to work, shopping mall and school make them very essential. By borrowing against your vehicle, you can still drive to work to earn the money you need to care for your family and to repay what is owed. Without getting stranded at home, this exceptional line of credit offers borrowers the money they need at a fair rate.