Car Title Loans
Car Title Loans
New regulations to limit the number of some types of loans per customer in Delaware recently took effect. As a result, car title loans seem to have become an even more attractive alternative for borrowers.
While car title loans already offer numerous advantages over other loans, the new reality in Delaware creates an even larger market for car title loans.
Car title loans in essence allow consumers to borrow against the equity in their automobile while allowing them to continue to use the vehicle. Because they are using an existing asset as collateral, the loan is using current wealth, rather than future earnings to secure the loan as would be the case in other lending. Because of this, car title loans may be less risky to the lender. Therefore the customer may not be subject to a credit check. Additionally, many car title loans can be gotten without the requirement of an established banking relationship. A growing number of Americans are without a traditional bank account. This can greatly reduce their chances of obtaining a loan from many lenders. But car title loans can offer a way around this issue.
The ability to borrow larger amounts is another advantage of car title loans. In most households, an automobile is the second most valuable possession (next to a primary residence). In the case of renters, the vehicle is often the most valuable possession. So rather than being limited to just a few hundred dollars like a typical quick cash loans, one can effectively borrow into the thousands of dollars with car title loans.
Car title loans also give borrowers the ability to repay the loan over a longer period of time. Most quick loans require repayment within two weeks. Car title loans generally start repayment at 30 days or more.
The cash advance loan laws, now restrict the number of times one is permitted to make use of this product. There are also new reporting requirement for some fast money loan lenders to track each individuals history. The purpose being to prevent borrowers from jumping from lender to lender in order to skirt the law.
Given the advantages of car title loans, it is easy to understand the continued growth of this product in the marketplace.