Getting a loan is a process that is pretty easy for some people, as they have a good income level and a decent credit score. This means that they have lots of options when it comes to borrowing money. However, those who have a low income or bad credit find that getting a loan from a mainstream lender can be much more difficult. In fact, some get turned down for a loan time and time again because of their circumstances, and this just makes their credit even worse.
There are alternatives available, and one of these is a car title loan. California car title loans are designed for people who own a vehicle that is registered in their name. You can borrow money that is secured against the title of your car, and the value of your vehicle will determine how much you may be able to borrow. This is a great solution for people in a range of circumstances, and we will look at some of these in this article.
Ideal Candidates for Title Loans
Title loans are ideal for anyone who owns a vehicle and needs to borrow money, but there are some groups who will benefit more than most. Some of these are:
People with Bad Credit
If you have a poor credit score and bad credit history, you will probably already know how difficult it can be to get any sort of finance. Mainstream lenders often won’t entertain loans for anyone with bad credit, so you may have been rejected for finance over and over again. All this does is leave more black marks on your credit report, which makes the situation even worse. With a car title loan, you can use your vehicle as collateral, which means you represent a lower risk to the lender. This means that your credit score is not the key factor, but the value of your vehicle.
People on Lower Incomes
Those who are on low incomes also have the same problem as those with damaged credit. Some lenders, particularly mainstream ones, will not approve loans to people below a certain income, and this could leave you in financial dire straits if you really need to borrow some cash. With a car title loan, you have your vehicle to use as collateral, so you will basically be taking out a secured loan. This means that you have a much better chance of getting the finance you need even with a low income level.
Those Looking for Fast Access to Cash
With some loans, you end up waiting ages for a decision, and then you have another wait before you get the cash if approved. With a car title loan, the money is paid out very quickly, and some people receive the money into their bank account on the same day. This makes these loans ideal for those who want speedy access to the money.
As you can see, title loans can cater to a wide range of needs.