A title loan is a fast, safe and easy way for individuals who own their car with a lien free title to get cash using their car as collateral. It allows people to obtain funds using assets (their car) to solve short-term financial needs. The process is usually simple and requires a minimal amount of time to obtain a loan.
Let’s take a look at some comparisons between title loans v. traditional bank loans…
Bank – usually a lengthy application requiring many documents, references, etc.
Title Loan – simple, one page application, minimal paperwork
Timeframe to Receive Funds
Bank – can take weeks, even months, sometimes up to 90days
Title Loan – same day, usually less than 1 hour!
Bank – lengthy credit check, often going back 7-10 years
Title Loan – absolutely NO CREDIT CHECK
Bank – when an individual pays off a loan early, banks lose interest income…to offset this, many banks will charge a “pre-payment” penalty
Title Loan – no pre-payment penalty, in fact, paying a title loan off early may help to build a positive relationship with the lender which may allow individuals to qualify for another loan later on
These are just a few of the many differences between an auto title loan and a traditional bank loan. Recent economic conditions and credit markets have made it more difficult than ever to obtain a loan from a bank. Title loans are a great way for every day, hardworking Americans to get access to cash when they need it most.
As with any financial product or service, anyone considering borrowing money should do so responsibly. We encourage individuals to consider all available financial options and work closely with financial institutions to determine affordable repayment terms. For more information on short-term financial services please visit http://chicagotitle.loan