Los Angeles, CA -- (SBWIRE) -- 04/27/2012 -- Car title loans really help people undergoing sudden financial crisis. They are availed by people to improve their credit ratings, as well as to meet their immediate requirements like medical fees, small vacations or educational cost. Car title loans do not require the customer to deposit the car itself. The customer needs to surrender only the title of the car. He can enjoy the ride with the car as well as repay the loan.
Car title loans have become very popular in the recent times, as the owner gets the loan within a short span of time. If the title of the auto is free from any kind of liens, one can get the title loan in a span of thirty minutes. The documentation process requires only the driving license, the residence proof, a set of the car keys and three references. One should be above 18 years to apply for auto title loan. The credit rating factor is not involved in these loans. People with good, bad and even no rating can apply. The lending companies also have lesser risk involved as the car itself acts as a collateral security in this case. Moreover, the amount taken as the loan is generally much lesser than the price of the car. So they benefit from both ends.
Other forms of loans which are more or less similar are auto equity loans, pink slip loans and collateral loans. Auto equity loans are more or less similar to the car title loans. The only difference is that, in case of auto equity loans one need not be the direct owner of the car. Even if the car is under the mortgage of any financial institution, a person can apply for this loan. The only criterion is the equity quotient of the vehicle. Pink slip loans are very popular with customers as they are available online. The customer needs to answer certain questions and the loan is issued. It takes maximum 48 hours to issue the loan. Collateral loans are availed by depositing the car as the collateral security. These loans are very popular with those who have a very bad credit rating. A good repayment improves the credit rating and helps one in the long run.
So the car title loans are the best solution available for emerging out of a financial burden.