Auto title loans are a great resource for any borrower, and one distinct advantage that auto title loans have over other loans is that auto title loans may be able to be completed one-hundred percent online. For example, Loan Mart allows its customers to complete the entire process online.
With a LoanMart auto title loan, instead of taking the time to physically take one’s car to an inspector or appraise, he or she can take pictures of his or her vehicle and have the car’s value appraised based off of the pictures of the vehicle and other information, such as the Vehicle Identification Number (“VIN”).
When you apply for an auto title loan from LoanMart, it can take as little as five minutes to complete the information needed for a loan, unlike the hours it could take for one to receive a personal loan. With auto title loans, there is a trust and convenience that may not be available when one is applying for other loans.
At other lending institutions, they may use a holistic approach when determining a borrowers’ approval. They may use one’s credit score, criminal record, or appearance to determine if one is a potential risk. Auto title loans eliminates some of those biases that may prevent one from receiving the funding that he or she needs: giving more favor to the borrower, instead of obstacles.
How do Auto Title Loans Work?
To give perspective on auto title loans, let’s take a look at LoanMart and their process for approving loans. If one was to use LoanMart as their lender, to begin the process, one would need to fill out the application, and this application can be found and completed online or over the phone. This gives you the convenience of being able to fill out the application in the comfort of your home or workplace.
- Next, you will need to send in your documents for approval. You will need to provide a government-issued photo identification for yourself and photos of your your vehicle. Your identification can be a driver’s license, state identification, etc.
- Your car can be identified through its VIN. A lot can be determined through a car’s VIN. It can be used to give the lender an idea of the car’s value, through accident reports and the exact date, trim, and model of the vehicle. A VIN acts like a social security number for a vehicle, for everything that the car has been involved in can be directly linked to the car’s VIN: eliminating the need to question the car’s history or value.
- Lastly, auto title loans from LoanMart allow the borrower to send pictures of the vehicle they will be using to back their loan for inspection, rather than having the borrower take the vehicle to a mechanic for inspection. This gives the borrower the freedom to use his or her time as effectively as possible.
How are Auto Title Loans different than Pay Day Loans?
Auto title loans are different than other loans, such as payday loans. Some pay day loans may allow the borrower to complete the process online, but there are some differences. One main difference is the interest rate and the term of the loan.
- Payday loans are an unsecured debt. This means that the lender is providing the borrower with funds with no way to secure the debt, so if the borrower defaults on the loan, the debt will be unpaid for the full amount. This may affect the borrower’s credit score and future eligibility of receiving a loan in the future. This also may open the borrower up to a lawsuit if the lender wishes to lawfully enforce repayment.
- Personal loans, such as payday loans, have high interest rates, probably higher than any other loan. They charge interest rates that can be upward of three hundred percent. This can cause an adverse effect for borrowers.
- One typically seeks loans if one is needing funding that he or she does not have, so having one pay back any percentage that can more than double then the funding he or she received in a short period of time may only entrap the borrower into a cycle of debt that one sought a loan to escape. They may have to keep taking out loans to pay off other loans.
- Payday loans are usually required to be repaid in a short period of time, so paying in installments may not be an option.
- Loans that need to be repaid in a short period of time often have higher payments, for the loan is not spread out over time. This may not grant the borrower the opportunity to use the loan effectively.
- Auto title loans can also have high interest rates, but they are usually far less than those of payday loans. LoanMart auto title loan payments can be repaid from anywhere between twelve to forty-eight months. This can grant the borrower more flexibility when it comes to paying back loans. Therefore, this alleviates the burden of needing to pay back the loan in full in short period of time.
The Convenience of LoanMart Auto Title Loans
- LoanMart auto title loan applications can be completed completely online. Other loans of all kinds may require the lender to physically go to a brick and mortar location to apply for a loan. Also, auto title loans have more favorable repayment plans.
- An auto title loan from LoanMart is meant to be beneficial for the borrower and the lender. Auto title loans are designed to protect the borrower from overhanging debt that one would need to repay if he defaults.
- They protect their borrowers from debt by using one’s car title as security, and they provide a fair and convenient way to repay and apply for loans. If you need funding, Loan Mart may be your solution1!