For those in the need of fast cash, one of the best options available is auto title loan. Currently, there are various organizations that offer fast auto loan. These loans are easily available and need no credit check.
Facing the recession, most US banks, financial institutions and credit card companies have enforced stricter norms to deal with loan requirements. This has made it difficult for Americans to get financial aids from these institutions. But as there is always a way out from every situation, alternate practice of meeting the financial needs of the people have emerged. The popular, reliable and easy among them is the auto title loan.
A auto title loan is similar to pawning a car. Unlike other loans, the auto loan is available for a short term and requires the borrower to hold a clear title of the car. This means the title should be clear from any sort of legal issues. Here, the borrower needs to keep the title of the car or the car itself, as a collateral with the bank or the financial company for getting the loan. At present there are two types of loans available from these companies. One is the Title Loan, where the company takes the certificate of title from the borrower and assign approximately 60% of the value of the car as the loan amount. The borrower in this case can still use the car while paying back the loaned amount. Another type is the Storage Loan, where the company keeps the car and pays an amount as the loan. The borrower can take the car back after repaying the loan amount at the end of a specific period or before the completion of that time.
The person who is in need of the credit takes the car and title to the lender for evaluation. The lender evaluates the car according to its make, date of manufacture and the resale value of the vehicle. Next, they determine the cars depreciation by comparing it with the actual value. After this process the borrower is typically assigned a loan amount ranging from 15% to 60% of the resale value of the car.
The loan amount is available immediately within a day or even within a few minutes. Beside this, the loan amount assigned in this case is comparatively low which makes the repayment easier. But the only concern of the borrower is the rate of interest, which is usually higher for this type of loan. Moreover if the borrower fails to repay the loan, he or she may lose the car.
Borrowers may find this loan convenient, as it is available regardless of their credit score. This loan is usually preferred for meeting short term credit needs which can not be availed from banks or other financial institutions. And as soon as the borrower accumulates the fund, he can repay the loan to gain back the title of the car. Beside if the borrower repays the loan quickly then he has to pay less interest which in turn will also keep the final amount low.
Auto title loans are available through the US including California. But it is the responsibility of the borrowers to choose the best lender for a title loan. To find the most reliable company in this respect one should check the BBB rating of the lender. To assist people in this regard, there are many BBB certified loan providers in California. A reliable Long Beach based loan company that services all of California is City Loan Fast Cash . Fast Cash needs are taken care of by this company in an efficient and concise manner.