Why Car Title Loans Are Gaining Popularity?

The present economic conditions have lead to financial difficulties for many individuals. The medical emergencies, rising prices and the layoffs can result in vacating your savings out overnight. The situations will sometimes demand for an immediate requirement of fast cash for recovering from the difficult times. The car title loans can be availed in the emergency situations with a very minimum paperwork. The car title loans San Jose California use the title of the car as collateral and provide an immediate loan to the debtors.

Fast Turnaround: The fast turnaround times have helped the car title loans to gain popularity at a much faster pace. Without selling off your family car, you can avail funds at a very affordable price. The collateral security provided in this case, helps to keep the interest rates very low and the rates of the approval very high in nature.

Second Mortgages and Car Title Loans: Second mortgage is a kind of mortgage where the mortgages are secured with the house and the land can be purchased with the help of the mortgage. The banks will definitely charge low security for this high level of security and with much secured lines of credit. The car title loans work same as the second mortgages. The risks can be decreased and the lower interest rates can be charged. The difference between the second mortgage and the car title loans is that the car title loans can be more easily available than the second mortgage. The banks will not provide the second mortgage by looking at the present condition of the housing market. The car title loans, on the other hand are equity loans which can be easily available.

Cash Advance Problems: The problem with the cash advances are that they can be obtained very fast but with a very high price. The credit card companies will charge a huge amount of interest rates and cash advances fees. The credit card holders may sometimes be unaware of the fact that the payments are applied to the purchases at first and then the cash advances are paid. The higher interest rates are added in the amount which is the due balance. Some companies may charge the membership fees for the loan amount which is even very small. The annual percentages of the interest rates can sum up to several thousands. The car title loans, on the other hand can provide very low rates of interest and a very fast approval time.

Apply Online: The car title loans can be applied online. Instead of waiting in a queue in various financial institutions and ending up with a refusal at the end, you can try the online application method. The process is hassle free as well as takes a very less turnaround time. The applicants can apply for the car title loan in a 100% electronic method from home. You should have few requirements before the online application:

  • A clean car title
  • The legal registration of your own car
  • Insurance proof of your vehicle
  • Recent Paycheck
  • Last statement of your current mortgage and lease
  • Driver’s license
  • Spare Keys

The online approval can be possible just within 1 hour from the comfort of your home. With a very few requirements and documents, the loan can be availed.

Without giving up your family car, the car title loans can help to come out of your difficult financial situation. It is advantageous from the other lines of credit because of its fast turnaround time, better approval chances, and immediate cash disbursal. This unique lending method can provide the loan at a very affordable rate too.

Author Bio: Stephen Dorothy is a well known debt analyst working in the lending company. In this article he talks about car title loans San Jose California and explains why it is very popular.