People these days can get the funds they desire when theyâ€™re short of money by applying for various types of loans. Those who need immediate cash, from a minimum of say $100, to pay for an urgent need can apply for a personal loan or a title loan.
Title loans are those that require collateral and they come in different types. It all depends on the title or document you have available.
This type of loan is popular among consumers owing to the fact that it does not consider an applicantâ€™s credit rating and loan approval is done quickly. Loan amounts granted by a title pawn company can vary from as low as $100 to thousands of dollars while the maximum amount a person can avail of normally depends on the type of collateral submitted.
It should be understood that availing of this kind of loan does not necessarily involve possession of an applicantâ€™s property such as a vehicle or any other physical object. These days, many lenders only get hold of the title or document that provides proof of ownership of a valuable property or asset. The only important requirement is the submission of a clear title with no financing obligations or liens on the vehicle.
To apply for a title loan, one needs to get in touch with a lender either online or at a physical office. A form will have to be filled out and a valid identification needs to be presented.
Auto Title Loan
An auto or car title loan is a short-term loan usually for less than a month although sometimes it can be renewed. Eligible to apply are those who need fast cash including those in the low-income group and people with bad credit. The downside is the high interest rate charged by most lenders.
Home Title Loan
This is often the last recourse of people in dire need of funds such as during an emergency situation but have no other options. Again, the title of the property has to be submitted in order to be approved of the loan. The borrower must also make sure to pay on time or risk losing his home.
With regards to interest rate, this type of loan that uses your residential property as collateral can be granted a low rate. But again, this will depend on the value of your asset.
So regardless of the amount of money a person needs, title loans are an option worth considering. Theyâ€™re very helpful in times of emergency when you donâ€™t have any other means to get money.
About the guest author:
Joseph Francis is a professional blogger that provides information and advice on car title loans and title pawns. He writes for TitleMax, a title loans store with locations nationwide.