Title loans are a type of loan where a vehicle’s title is put down as collateral in exchange for a loan. Nowadays most Americans have heard of car title loans. Nevertheless many do not know the about interesting facts that surround title loans and the loan industry in general. The history of title loans is interesting because it highlights a pivotal point in the history of the United States’ economy. The time of emergence of title loans also highlights the flexibility of financial institutions who learn to adapt to the needs of the people. In addition to the history of title loans, most people do not know about the process of these loans and where they are available. Title loans have many interesting facts attached to them and it may be useful to know about them especially if a person is looking into getting a title loan.
Where Title Loans Originate From:
During the early nineteen nineties there was a widespread recession that hit the United States and surrounding countries. Because of this many people struggled financially and their credit suffered greatly. The only available loan type back then where unsecured loans – loans without collateral that typically require good credit history. Loan lenders of that time saw that people who had taken a hit to their credit/finances also needed some way to get extra funds. And so emerged the title loan industry. Title loans gave those people with poor credit an option to make ends meet1.
Title Loans are a Type of Loan:
Title loans are a type of secured loan – a loan where the lender has some type of collateral in case the borrower defaults on the loan. In the case of title loans the collateral is the vehicle. All lenders vary on what kind of vehicle they will take but most ask for a few basic things from the vehicle:
- The vehicle must be in safe working condition
- The title must be lien-free
There are Other Countries that Allow for Title Loans:
The United States allows for title loans, and so does Canada. With the two countries being so close and interlinked it is not too surprising that both of these countries adapted to the financial needs of their people at a time of economic crisis. Canadians suffered similar affects as their southern neighbors from the nineties recession. Their financial institutions acted in a similar way to the Americans by also introducing title loans to its residents.
Title Loan Values Greatly Depend on the Value of the Vehicle:
The interesting thing about title loan amounts is that there is no cap to what can be given out. Lenders largely base the value of the loan on the value of the vehicle. (Keep in mind all lenders are different and income is also a large factor in determining the amount).
There are All Sorts of People that Take out Title Loans:
Title loans are not just taken out by those who have poor credit, it is interesting to know that there are many other types of people who seek them out. A person with the following circumstances may look to a title loan; having no credit or credit history, living without bank accounts, and/or simply just needing money quickly and easily. Title loans offer funds to people who normally could not get any from the traditional loan process1.
Title Loans May Improve Credit
Taking out one of these loans, and then responsibly paying it back on time may improve a person’s credit. If someone has no credit, a title loan can help establish some. In addition, it is good to know that inquiring about a title loan will generally not impact credit score either1.
Several Types of Vehicles Can be Used for a Title Loan:
When looking for a title loan people with non-traditional vehicle types may find it interesting to know that title loan lenders accept several kinds of vehicles as collateral. Examples of non-traditional vehicles that many title lenders may accept are:
- Electric Cars
- Certain Trucks
The Title Loan Process is one of the Easiest and Fastest Way to Get Funds:
The title loan process can be done mostly from the convenience of home. Sometimes lenders do not even need to take a look at the vehicle in-person. It only takes a few minutes to get through the process of determining eligibility. Once eligible, the funds from a title loan can be sent out the same day or in twenty four hours1 5.
There Are Free Services That Connect People With Title Loan Lenders:
Finding a title lender may seem like a chore and that is why title loan connection services exist. A lot of these places open early and close late to make sure they can service potential borrowers. These services give a borrower different options and are helpful for answering any questions about title loans that a person may have. Max Cash Title Loans is one of those services. We work with lenders all across the United States. Let us help you learn more and begin with the title loan process1.
Title loans have been available in the United States for many years now. There are many interesting facts about them, from their emergence to the submission process. Understanding these interesting facts may help before seeking out a title loan. At Max Cash Title Loans we can help you if you have any further questions about title loans and even help with finding a trusted lender5.