subject: Advantages Of A Title Loan Vs. Other Loans [print this page] Thinking about obtaining a loan? While there are many types of loans, consider the advantages of a title loan vs. other loans. A title loan is a type of loan that involves the transfer of the title to a stated property to a lender. Many borrowers often make the mistake of assuming that a title loan is synonymous with a car title loan. The reason for this belief is based on the fact that car title loans are often more publicized than other types of title loans. In reality, the title to different types of registered property can serve the same purpose when it comes to obtaining a title loan, including things like yachts and motorcycles. Ultimately, the final decision regarding what type of title to accept rests with the lender. Some of the more notable advantages of a title loan vs. other loans include the following factors.
Credit and Title Loans
For some borrowers, the most beneficial aspect of a title loan is the fact that it does not require any credit check. From the lender's point of view, the title to the property serves as collateral, making it unnecessary for them to engage in credit checks. With most of the other forms of loans, the lender usually conducts an extensive credit check in order to verify things like credit score, length of credit history and loan or credit card repayment history. They also check things like the credit-to-debt ratio, and the debt-to-income ratio of the cumulative sum of the various accounts. People with a poor credit history often find it challenging to obtain any kind of loan since lenders view this as an indication of a lack of financial credibility. Those who seek title loans can most likely obtain such a loan without any credit check.
Instant Cash
Since borrowers mainly seek loans in order to take care of some pressing issue that they do not have the financial resources for, title loans can make this process more expeditious. Rather than wait for lenders to analyze their financial profile, conduct credit checks and scrutinize their sources of income as part of the process of qualifying for other loans, they can apply for title loans. So far as the title to the property under consideration is free from any legal entanglements or disputes, the borrower may even walk out of a loan facility with the needed cash in under an hour.
Convenient Use of Property
Another consideration in the advantages of title loans vs. other loans is the fact that a borrower still retains the use of the property, even when the title is in the possession of such a borrower. For instance, a borrower who obtains a title loan using the title to a boat may still use the boat, even while repaying the loan. So far as the borrower pays off the loan according to the agreement with the lender, he or she will regain full possession of the title to the boat once the repayment is complete.
