C
ar title loans are simply an alternative sought by individuals who need to get money fast and use of their car as collateral. Therefore, the value of an individual’s car will determine the amount that is loaned to the person.
This option is viable in the events of the following:
i. You require an instant cash loan and you don't have any other substitute borrowing source, but you own a car.
Even in conventional banks, a car can be used as collateral to receive a loan. It thus makes no difference if one uses his/her car to get an emergency loan. When your car is your only possession, car title loans are a practical route.
ii.When you have an extremely low credit score
Credit bureaus provide credit scores which entail a collection of all your borrowing history. So, while with apoor credit recordit can be hard to get a loan, car title loans may often offer you an almost instant loan, since there is something valuable they can use to get their money back in case you don't pay back.
iii. Your car is not on loan
Most car title loaners will try to ascertain if the car is not being held hostage by another loaner. Therefore, you are only eligible for this loan type if, and only if, the car title loan is the only bearer of the collateral.
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