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Car Title Loan vs Traditional Loan

3 Mar 2012 - 20:29 WIB

A loan is a debt. In a loan, the borrower initially receive money from lender. A loan is generally given to borrower with a cost, or interest.
Types of Loans : secured vs unsecured loan
There are secured and unsecured types of loans. A secured loan is a loan in which the borrower use his or her asset, for example: car, as collateral. Whereas, according to Wikipedia, Unsecured loan is monetary loan that is not secured against the borrower’s assets. However, interest rates of unsecured loans are ussually higher than for secured loans.

A car title is a loan where the borrower use their car title as collateral for a loan.

In other side, Traditional title loan works in accordance with the faith that an individual will pay the amount of money back. In other words, traditional loan only works with those who only have regular incomes from regular jobs and health credit scores. Some people are not lucky. Some people are not in the situation to fulfill the condition for traditional loan. Some people do not have good credit scores. Some people have no experience in borrowing money.

Car title loans
Traditional loan needs time to process. People, who want to borrow money, need to wait to receive traditional title loan whereas they can receive car title loans quickly. Ussually, to get car title loans is easy. When people in hurry of financial needs, they can get cash safely, quickly, and easily car title loan.

Traditional title lender practice predatory lending rates whereas car title loans has low interest rates which may be lower than a credit card.
Nowadays, there are websites which provide online application system for car title loans and they can process the applications fast. You do not need to bring your car for physical inspections.


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@maswahyudidik
Halo, nama panggilan sesuai KTP nama saya Wahyu, di kampung di Jogja nama panggilan saya Didik. Di Goodread nama saya YW Purnomosidhi. He he saya kadang-kadang blogger, penulis cerpen fabel, penterjemah dan internet marketer.

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