Surveys of the financial markets have revealed that car title loans have improved their appeal, especially to a cross section of society that has been increasingly isolated from mainstream banking – the poor credit customer. It’s not as if bad credit consumers are out rightly being denied loans by bigger banks; it’s just that the rules are squeezing many such customers dry.
Pawn car title loans have acquired a formidable reputation for quickly handing out cash when crisis situations threaten to smother customers under the burden of meeting urgent financial deadlines with an empty pocket. What played spoilsport till recently was the surfeit of high interest loans that were flooding the market through unscrupulous lenders out to make a quick buck at the cost of the consumer. Unheard of three digit interest rates like 300% APR were converting good borrowers into circumstantial defaulters. Title loans helped many consumers close such loans and move over to a softer interest regime.
To set the record straight and remove the misgivings people harbored regarding title loans, here are some of the best features that make car equity loans so attractive and favored by bad credit customers:
The bulk of borrowers resorting to auto equity loans had severe loan repayment problems that they had difficulty sorting out in the past, yet they found themselves eligible for title loans.
Some title lenders might have pulled the credit reports of their customers but none of them insisted on probing the credit histories of the customers.
These title loans seldom charged any rate more than 25% APR, a huge saving compared to predatory payday loans and pawnbroker loans.
The auto collateral loan became more of a win-win situation for the borrower because he only had to offer the collateral of his used car and that too without handing over the keys to the title lender or having to leave the car in the lender’s custody. The borrower kept the car and his keys for the whole tenure of the loan which suited him just fine.
Inevitably the comparisons between car title loans and bank loans come to the surface:
Banks invariably approved larger loans much beyond the borrower’s legitimate needs and these loans took him longer time to repay. Any default landed him in deep trouble.
The bank rate of interest appears low to begin with but the aggregate interest outflow comes to a much bigger amount when you consider longer repayment tenures.
If borrowers requested smaller loan amounts repayable in shorter periods, banks would levy exorbitant rates, fees and processing charges.
It is not just bigger loans, longer repayments and huge interest pay outs that bugged bank loans. As far as the average consumer was concerned banks just couldn’t get it right when they wanted cash as fast as possible; in truth banks were not meeting the urgency of the applicants request and banks were habitual of dragging approvals over two to three weeks.
This is an area where cash loans for title scored – getting the cash into the consumer’s hands as fast as the demand was raised. This is precisely what makes title loans so attractive – they are primed to deliver money in emergencies. Something that banks failed to do miserably. Part of the title loan’s success can be attributed to fewer paper work, faster turnover and quicker response time.
In any cash emergency you will need money, and require a loan that can be disbursed quickly. You need not look beyond the company that has an awesome reputation for offering the quickest car title loans in the business – Car Title Loans Ontario, Ca. The company ensures you get your cash in less than 15 minutes regardless of whether you enjoy a good rating or you carry the burden of bad credit history.
Title Loans Express has carved an unassailable reputation for itself by offering the most competitive and affordable rates that you can get in the short term lending market. The lower rates are matched by easier repayment schedules that borrowers will find convenient to adhere to.
If you want to unlock the equity lying dormant in your car, truck, boat, or motorcycle, simply login to Car Title Loans Ontario, Ca for 24/7 lightening fast services without the hassles, and minus the red tape.