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One may hit rough patches on finances at any instance of time and might need a little extra cash fast. Most of the people are scared of getting into debts or to mess with complex loan process. People often connect loan process with hefty paperwork’s, long queue and list of demands. Undoubtedly, such is the case when one applies for traditional loan process which includes banks and credit unions. But one might not have to face all the difficulties if they own commercial vehicle. The vehicle help one qualifies for title loan which is the simplest loan process available in market.
Unlike other loan process, commercial vehicle title loans are the best available loan product for people who are in urgent need for cash. Majority of lending company determine credit score of individual as eligibility criteria to qualify for loan process. The credit score can be defined as combination of three numbers which depicts the credit history or overall creditworthiness of an individual. This parameter helps lender across the globe to analyze the repayment ability of the borrower, a good credit score reduces the risk rate and increases the probability of getting loan approved along with affordable interest rate whereas people with bad credit score often find it difficult to borrow money from such authenticated sources.
Amidst the complex loan structure, title loan is a savior for people with bad credit score or for the one who are in urgent need of cash. None of the licensed title loan lenders determines credit score or financial background of borrower. For an individual to qualify for title loan, he or she must possess any commercial vehicle including semi trucks, semi-trailers, box trucks, dump trumps, food trucks or local delivery step vans with a clear vehicle title. The amount of the loan is determined according to the type, condition and specification of vehicle. Make, made, model of vehicle are said to be the most influencing factor when it comes to determining the amount of loan. Usually, the lending company provides around 50% of the worth of the vehicle as the final amount of loan.
Since the use of collateral makes the complete loan process secured, the loan doesn’t have any fixed interest rate and differs from situation to situation. In majority of cases, the interest rate of secured loan is determined on the basis of amount of loan, repayment ability of borrower or overall worth of vehicle. However, in case of title loan the lender ensures that borrower is provided with affordable, convenient and flexible repayment structure. The representative of the lending company interacts with borrower to determine the current financial situation and accordingly design the most affordable repayment structure.
Applying for title loan is really easy and even the complete loan process from start to end can be completed within few minutes. However, it is really important for borrower to plan about the repayment during the early stage of loan process to reduce the chances of loan default. In case of default in repayment, the lending company might auction the vehicle in order to cover the remaining amount of loan.
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