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Why Car Title Loans Are Better Than Other Micro Loan Types?

Haris Saeed Haris Saeed , 7/3/2018
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Car title loans since the very beginning have been helping people get rid of their debt. Every people go through tough financial times and require an effective medium that can arrange quick money at the time of need. The biggest problem with every loan type is that most of them don’t have quick loan approval process which means the person in need of quick cash has to opt for not so legit financial institutions that can very easily take advantage of the cash crunch situation the person is going through.

This is the reason car title loans are the best loan type when it comes to loan approval rate and many other aspects. If you are familiar with the traditional bank loans and reputed financial institutions you know it how hard it is to get a loan and that too quickly. But car title loan is an exception to the present traditional loan approval system. If you want to find out why car title loan is the best loan then read below to know about the features of this amazing micro loan type:

The paperwork is very minimal which means the borrower needs not to arrange a heap of documents to be eligible for the loan. The loan is basically dependent on the title of the car which should belong to the person applying for the loan. Then few details like the insurance, no lien holder information, service record etc. are needed along with few personal details to verify the identity. If a person has all the information in place then he/she can get the loan within few hours.

The loan approval process is also very swift. Once the borrower visits the car title loans office the documents are verified and the vehicle is inspected and the value is evaluated. If everything is in place the loan is generally sanctioned within few hours. So for people in need of quick money car title loan is the best option.

We generally see people being turned down by banks and financial institutions if they have bad credit score. But in car title loans bad credit is not an issue because the loan is sanctioned on the value of the vehicle and not dependent on the financial background of the borrower. If all the papers required as per the terms and conditions of the loan are in place the credit history is not something that can hinder the loan approval of the person with bad credit.

If a person has become a victim of some bad loan and want to switch to a better loan alternative then also car title loan is the best bet. The person looking to switch to better loan can discuss with the car title loan provider and tell him about the terms and conditions of the previous loan. After the lender and borrower reaches to a conclusion on the new loan the lender pays off the old loan. This way a person going through bad loan can switch to a better alternative.