Car Title Loans

How is this a good investment for both the borrower and the title loans Los Angeles? It is an excellent investment for the borrower. That’s why: at this point, let’s assume the borrower is in some kind of financial disposition. This means that the borrower may have lost his job, cannot afford to pay the rent, may need money for his child’s school tuition; there could be a number of possibilities why the borrower is looking for cash instantly. Depending on the value of the borrower’s vehicle, the borrower may receive up to the maximum the loan company can offer. Some loan companies offer up to $100,000 and others may offer lower loans of up to $5,000. Obviously, if the borrower is driving a Mercedes or BMW, he or she will be looking for a higher loan value, but each title loan company is different.

Let’s look at the other side of the spectrum. How is this a good investment for the loan company? If we go back to the first few sentences of this article, we can see that the title loan company “uses the title to the borrower’s vehicle as collateral during the loan process. What does this mean? This means that the borrower has given the title to the vehicle (vehicle ownership document) to the loan company. During the loan process, the title loan company charges interest. Again, all businesses are different. Some companies use high interest rates, and other companies use low interest rates. Of course no one would want high interest rates, but loan companies that can use these high interest rates are also likely to give more incentives to borrowers. What are the incentives? It depends on the company, but it can mean an extended loan repayment process of up to “x” months/years. It could mean that the loan company is more forgiving of the amount of money that ends up in the loan.

Go back to why this is a good investment for a title loan company (for everyone who reads this and wants to start their own title companies). If at the end of the loan repayment process, the borrower cannot get the money, and the company has been very forgiving with the multiple loan extensions. The company legally receives the title guarantee from the borrower’s vehicle. It means that the company receives ownership of your vehicle. The company can sell the vehicle or deliver it to collection. So, are car title loan companies a scam? Absolutely, NO. The borrower just has to be careful with his own personal finances. They should know that they have to treat the loan as if it were their monthly income. A borrower can also repay his loan. There are no restrictions on repaying a loan. He or she could choose to pay it monthly, or pay it all in one payment. As in any situation, the sooner the better.

Auto Title Loans: The Pros and Cons


It’s helpful to analyze the pros and cons of a car title loan before you decide to borrow. Learning about your financial investment before finalizing anything is a great financial tool for success. A borrower should fully consider their options before making a decision.

If you go online to most car title loan companies and read their “about us” pages, “apply now”, “FAQ”, you will see how biased your information really is. This is called fake marketing. Like the terminology “fake advertising,” most of these companies never tell the whole truth about your company. They can hire outside journalists and columnists to write their content. Read the content before making your final decision. If the content is cheesy and you use images in your content, the company is probably bullshit. Writing jargon in articles isn’t something to brag about, but are we? Really? This is 100% necessary! An example of poor image content might be: “Tired of storms and rainy days, get a car title loan today and turn your day into a bright, sunny day. The content shouldn’t be a story, if borrowers really want to read a story, they can pull out their “corners” and read an article from “Reader’s Digest”. The content must be straight to the point, to get borrowers wanting to receive a loan from the title company.

Advantages of Car Title Loans

The clearest of the pro’s would be the advantage of receiving instant cash. Anyone can enter your local 7-11 store or convenience store and purchase a state lottery ticket. This process is extremely easy; however, the likelihood of receiving a large amount of cash instantly is extremely low. The likelihood of receiving instant cash at your local auto loan company is extremely high. Unlike traditional banks and credit bureaus, another advantage of the auto title lending industry is that THERE ARE NO CREDIT CHECKS. Most of the time, borrowers come to tile lending companies because they are stuck in financial situations. Their credit scores are generally poor at this point, after collections have had to make adjustments continuously because they failed to pay their bills on time. That’s a great “Pro” for an auto loan company. No matter what the borrower’s credit score is, the borrower is still qualified to receive a car title loan. Another advantage of the car title lending industry (mentioned earlier in the article) is that since the borrower is putting his car loan as collateral, it is easy to convince the lender to extend the loan to you.

How does a borrower qualify? As stated before, THERE ARE NO CREDIT CHECKS, therefore the borrower is already pre-qualified for a loan at this point. However, the borrower must meet the following requirements to receive a car title loan. The borrower must be 18 years of age or older, the borrower must own the title to their vehicle, have paid for their vehicle free of liens, and must have a valid driver’s license or state identification card.

How long does the application process take? The simplicity and speed of the application process is another “pro” or advantage for the car title loan. The average online application only asks basic personal questions related to the borrower’s vehicle and its location. The application takes approximately one minute or less to complete. Most companies return the borrower within minutes of submitting an application. Once the loan representatives read the information from the borrower’s application, they quickly make a call to the borrower based on the number provided on the application, and review the details and process for obtaining a loan.

Author: John Wright