There are various possibilities that you might get hit by the financial crisis at any instant of time. Be it some situation like emergency medical bills, loss in business or some surprise expenses. The one who has savings can easily get through situation but people with no savings and bad credit score can easily get devastate. Since, most of the lending institutes determine credit score of the individual as eligibility criteria for a loan, the one with bad credit score cannot make it to the list of approvals.
A credit score is the numerical depiction of individual’s creditworthiness and therefore helps lender in decision making. Generally, most of the loan processes have a complex structure and long list of demands and eligibility criteria. Often borrower is required to have sound financial condition followed by good credit score as the major requirement.
Required Eligibility Criteria
Some of them also require the borrower to present tons of documents stating all the information mentioned in the loan application form. Most of the people are scared of loan processes because of such high demands as they think; they will not be able to qualify for them. Nevertheless, there is always a savior which helps people get through even the worst situation. A car title loan is the simplest loan product available in the market with minimum requirements and maximum of benefits.
Any individual who completely owns their car with clear and lien free vehicle title can easily qualify for title loan irrespective of their financial situation. The major eligibility criteria for title loan include a clear and lien free vehicle title which must be on the name of the borrower. The borrower must use the vehicle which is in good working condition so that it can help to get a decent amount of loan. The borrower must have attended legal age at their respective state and should also be able to present their driving license.
Other Necessary Things to submit
In addition, the lender also requests borrower to submit some of the basic documents which include a government approved photo identity proof, clear and lien free vehicle title along with a copy of car insurance paper and regular income slip. The above-mentioned documents and conditions are enough for one to easily get through the complete loan process. To begin the loan process borrower is required to fill the loan application form with all the information which is then reviewed by the representative of the lending company.
Thereafter the vehicle is inspected thoroughly so that lender can determine its condition and accordingly its market worth. The final amount of loan is determined according to the worth of vehicle and in the majority of cases, the lender provides around 50% of market worth as the final amount of loan. One can get a maximum of $50,000 with car title loans depending on the condition of the vehicle. Make, model, condition and brand of the vehicle are some of the major criteria which greatly influence the overall value of the vehicle.
Hence, people who own their vehicle in good condition have better chances of cracking a good deal in comparison to others.