In our current times it is increasingly becoming harder and harder to obtain credit. This is especially due to the fact that banks and lenders have tightened up on capital and have made it increasingly difficult for the average consumer to obtain credit. Customers with revolving accounts are even running into the problem of having their credit limits lowered as well as increased fees. When it comes to car loans especially, you'll rarely find very many banks out there that offer a “fast credit” where you can get cash easily. That's an option that was very easily available in years past but not in recent times. There are, however, still a few companies that offer a way to expedite the credit process. This is not to be confused with the payday loans with high interest rates that end up putting you in a whole that you have to climb out of.
There are consumers out there that need fast access to capital but they can not get any capital just because there are so few options available. The only few types of ways to obtain fast credit is primarily through the use of secured financial instruments also knows as “secured loans.” Secured loans are when a lender typically gives the borrower funds or monies in exchange for the title of a property. Although the lender will not physically KEEP the property in question, they reserve the right to take it away from the borrower in the even that they do not receive the funds that were promised to them.
Car title loans are a good example of a secured loan. Although the car loan business is slowing down due to the credit crunch in the economy, car title loans are a rapidly growing industry. The way the process works between the borrower and lender is fairly simple. There are large amounts of money available to customers when compared to a standard payday loan because this is actually a secured form of lending. The collateral that is being offered in this scenario is actually the title to the borrower's car. When securing a loan such as this it requires very little effort and time and usually involved nothing more than just filling out a few simple forms either online through the internet or over the phone. Sometimes in rare cases they may ask a borrower to drive to a nearby location so the vehicle can be inspected to verify it is in working condition.
Although car loans and other types of lending often weigh the customers credit very heavily, title loans are based more on the value of the car. The reason for this is that title loans are based on the borrower using the title for the car as collateral for the loan. Most loans that you get at any title loan agency will cover up to fifty percent of the value of the vehicle although this depends on state or local regulations. In some cases, the agency may also ask that the borrower show proof or evidence that there is an ability to repay the debt by showing proof of income. Although the industry is in it's budding stages there is great potential.