Loans are not often talked about -it seems they are slightly taboo. Much like chatting about salaries and how much we pay for rent or houses, loans are not acceptable topics and we never raise such topics in public. Loans are avoided and even hushes in certain circles; even among family, loans are not dinner table talk. So when do we talk about loans? Hardly ever, really, but here we will discuss why people need loans and the possibilities of getting one.
Do You Need a Loan?
The reason for needing a loan is personal and, well, subjective. Where one person sees a need for a loan, another may not. But that’s neither here nor there. The point is, if you feel you need the money –well, you need the money. Period.
Of course, there are more serious reasons why people need loans. It can be an unexpected accident or sickness that lead to a hospital stay, it can be a family emergency, it can also be an unanticipated lay-off from work –these are dire situations that call for fast cash without hassles.
There are less immediate reasons that don’t demand the same instant solution as the aforementioned ones. From refurbishing a home to paying for college, there are more personal reasons for loans. Clearly, these loans are not as severe, but they are of pronounced importance to some people.
Then there are reasons that don’t require immediate attention such as a plastic surgery or a vacation. Although, it’s not advisable to take out a loan for such reason, however some people are not willing to accept no and will go to great lengths to acquire things they want.
Why People Take Out Loans?
The reason is quite simple –not enough money. The problem can be that the person doesn’t earn enough or that the person is not very prudent with savings and spending. Either way, the person doesn’t see a way out of the situation without the help of a loan.
In some cases, family or friends can’t provide enough financial support to the person, hence the loan –assistance from an outside source.
In other cases, there is no family or friends to help, therefore the person seeks the assistance of a loan –the loan acts as source of support when close ones don’t exist.
Types of Loans
Bank loans give people loans who can prove, without a doubt, that they are able to pay the loan back. How does the person prove this? With lots of documentation in the form of the following: credit history, employment proof, salary and tax slips, references, proof of assets among other paperwork. For most people –the pile of paperwork is daunting not to mention the waiting period. Not many qualify and those who do are very fortunate.
Credit unions offer loans to those who are affiliated with unions or have certain contracts or employment. This group is, to be honest, quite exclusive and without the proper connection a credit union loan is nearly impossible.
Payday loans are based on the amount one earns. In order to get a payday loan one needs to be employed and must have paycheck stubs or direct deposit receipts dating back to a few months ago if not a year. These loans use the applicant’s salary as the basis for the loan amount; likewise the payment plan will be selected in conjunction to the applicant’s wages.
Title loans are based on the applicant’s vehicle. The only requirement of this loan is the car’s title or car payments on a car that is nearly paid-off. No other documentation, besides a valid photo ID with at least 18 years of age, is requested to get a title loan.
Loans for People with No Credit/Bad Credit
Most loans require at least a few documents to establish a level of trust between borrower and lender. For some, that can be difficult. For others, it can be impossible.
Let’s take some of the serious reasons people need loans and apply it to this situation. What is the person under financial crisis doesn’t have sufficient proof for a standard loan? What does that person do? Well, they could try a payday loan, but those loans often use credit scores as part of the process.
In such a situation, a person would need a title loan –a loan that doesn’t demand much for the applicant who is under the heavy hand of a money matter. Title loans do not use credit scores to determine a borrower’s loan because under the rules of a title loan the only determining factor is the value of the vehicle.
Benefits of Title Loans
Because there are no large endeavors when it comes to getting a title loan –no mountain of paperwork, no waiting periods, no credit checks –borrowers can get cash for their car in a matter of hours. When the applicant doesn’t have to suffer for lack of paperwork or a past mistake, this removes pressure making title loans a perfect solution.
Title loans only require one application that can be filled out in a few minutes. In comparison to other loans, this is quite a difference.
Because title loans do not use the borrower’s credit history as a precursor for the loan, borrowers can feel at ease knowing that a huge weight has been lifted.
Title loans allow the borrower to leave with their car. Although very similar to a pawnshop situation, title loans do not require the borrower to hand over their goods –or in this case, their car. Maintaining possession of the car is an extremely positive attribute for title loan borrowers who need their car for work purposes.
If you find yourself in a financial problem and see no light at the end of the tunnel, be aware that title loans are here to help you see the light and help you make your way towards the end of the tunnel. Title loans are the best loan on the market for those who might not qualify for a regular loan or any other loan for that matter.