When a financial emergency hits, funds may be needed quickly. The traditional loan process could take several days or even weeks to give approval for funding. Additionally, the process of determining eligibility comes with several steps. For this reason, many people look into getting a car title loan because funds may be available extremely fast and the process takes much less time when compared to traditional loans.
A car title loan is a type of secured loan where the borrower’s car title is used as collateral. The process of getting a title loan could only take a few minutes, depending on the lender. If a person is looking to get a car title loan, they may curious as to how they could go about the process and just how quickly they could receive funds.
What Takes So Much Time With Traditional Loans?
When it comes to traditional loans, there are a few reasons why the process takes an average of seven business days. This is because traditional loans require a thorough credit check and a lot of other personal documents that the lender must go through. The lender needs to figure out whether the borrower is eligible for the loan, and then sending out the money could take about two business days. For many people in need of quick funding, a week is just too long to wait. Instead, they may want to turn to a loan process that is much faster, such as a car title loan.
How Can a Car Title Loan’s Process be So Fast?
A person may be wondering why car title loans are so different when it comes to the speed of the process. There are a few reasons why the car title loan process is much faster than the traditional loan process:
- No Credit Check- Unlike traditional loans, most car title loans lenders do not require a credit check at all. This may account for some speed involved with the process.
- The Security of the Vehicle– The lender has the security of a vehicle in case the loan defaults, reducing the amount of time used for determining eligibility.
- Higher Interest Rates- Interest rates on car title loans are extremely high because these loans may be available to most customers, including those who are considered high risk. Because of the return lenders receive from interest, they do not need to take a lot of time to think about the risk associated with giving out money.
- Convenience- Many lenders operate online or over the phone. In fact, the entire process could be done this way, saving customers even more time.
What Do I Need To Get A Car Title Loan?
If you’re considering applying for a car title loan for quick funding, you will need a few things. Along with a safe working car, an individual must provide the following:
- State I.D. or driver’s license
- Proof of income (bank statements, pay stubs)
- Qualifying car title in your name
- Vehicle inspection (in person, online, or through several pictures)
Once a person has these documents on hand, they could then look into obtaining a car title loan. Car title loan lenders will also ask for the potential borrower’s vehicle make, model, year, and mileage.
How Does the Car Title Loan Process Work?
To begin the car title loan process, a person needs to get in contact with a title loan lender. This could be done in person, over the phone, or online. Most lenders have an online inquiry form that a potential borrower could use to apply online and get the process started – even before speaking with anyone.
Once a lender is contacted, they will ask for the borrower’s essential information (state I.D., proof of income, car title, vehicle inspection). They will then, often on the spot, determine eligibility. Once a borrower is deemed eligible, the lender will come up with a value for the vehicle. This value will largely translate into the value of the loan.
When coming up with the value for a loan, along with a vehicle’s value, lenders will also factor in the borrower’s ability to repay the loan. Finally, once the vehicle’s title is handed over and the contract is signed, the funds may be transferred the same day or by next business day.
How Max Cash Title Loans Could Make the Loan Process Even Faster
Max Cash Title Loans is not a direct lender. Instead, we work with several trusted lenders across the United States to help you find an affordable car title loan deal. We could make the car title loan process even faster by acting as the middle man between you and a title loan lender. We have been doing this for a long time and know all the ins and outs of the process.
To get started, get in contact with us via phone (855) 561-5626, email email@example.com, or visit our website for more information or to access the online inquiry form.
The process of getting a traditional loan could take about seven days, for many people funding may be needed much faster. With car title loans, the process may only take a few minutes and the funds could be available as fast as the same day.5 At Max Cash Title Loans, we could make the process even faster. Let us do the hard work of finding a lender and working through the car title loan process with you.5