Is a Car Title Loan Available to Me?


With individuals sweating their credit ratings more and more these days, forms of lending that aren't given based on credit scores are becoming more popular. One of the most heavily-used forms of such lending is a car title loan. These loans are based on the collateral system which is easy to understand and negotiate. They're also based on an individual's income, so a steady source of income from employment or some other source is required to secure one of these loans. The vehicle will be put up as collateral.

A car title loan is available to most anyone, regardless of credit. The credit-rating based system of lending is a fairly modern invention. Previously, loans were made either based on an individual's income or based on the amount of goods they could offer up as collateral. This system of lending endures because it is among the simplest and fairest forms of lending devised. If one has property worth a certain amount of money, then they can borrow a percentage of that money by placing up the property as collateral in the event that they default on the debt. This arrangement makes credit scoring unnecessary.

If one has a vehicle with a clear title and a steady source of income, they're likely eligible for a car title loan. A clear title?also sometimes referred to as a "clean" title?means, first and foremost, that the individual taking the loan is listed as the owner of the vehicle. Co-owned vehicles are not eligible for collateral unless all owners sign-off on the debt. There must be no financing that applies to the vehicle. It must be owned outright by the applicant. There may also be no leans against the vehicle at the time it is presented.

The car title loan can be applied for online, though one will need to bring their vehicle to a physical location for inspection. The vehicle remains with the borrower after they take out the loan, so there is no need to go without transportation while the loan is being paid-off. If one's credit has become compromised, this type of lending is almost certainly still available to them. Most car title lenders don?t even bother with a credit check as they're being offered something of value for their faith in the lender. It's as straightforward and simple as lending can be and a much different model than is used by the majority of lenders.

Versus a car title loan, the more common forms of lending presently on the market represent a very complex system of determining one's eligibility and, sometimes, these determinations are made on criteria that are nothing short of arbitrary. Especially in tough economic times such as those which are currently being experienced, these criteria are oftentimes based in a financial situation more characteristic of the borrower's past than their present or future though the reporting agencies do not hesitate to claim that they present an accurate picture of both.

Good, responsible people who play according to the rules and make every effort to honor their debts are not immune to totally random situations that can cause them to suffer a loss of image in the eyes of creditors who aren't as egalitarian as car title loan providers. The creditors that rely on measures provided by credit reporting agencies will likely not even be willing to deal with someone who doesn't meet certain numerical criteria based on the credit reporting data the company uses as a measure of credit worthiness. This is more a case of having the door slammed in one's face than a case of simply being ineligible for lending.

Car title loan providers are working off a much more established and reliable means of determining creditworthiness and are thus able to lend based upon the consumer they meet rather than based on the picture of that consumer provided by one or more of the major credit reporting agencies. In a free market, to participate in a financial system is to validate it and, for consumers who have been treated unfairly by traditional creditors and the agencies who do their work for them, using a different type of lender is a viable way to cast one's economic vote.

Car title loan providers offer not only an opportunity to mitigate the damage caused by the regular system of lending and borrowing, but for consumers to escape that system altogether. What one has to offer determines what one has to borrow and the only income factor is the most rational of all: How much the consumer receives in payment. These criteria are reasonable and easily proven as empirical facts rather than being a number assigned by an arcane system of grading a consumer without regard to the reality of their situation.