Title loans are a traditional form of receiving cash. Although it usually brings to mind the fact of getting money from close relatives and without interest, in recent years such loans have also been increasingly offered by loan services and parishes, as well as by private individuals with their own capital. For some, it is the only solution that allows you to quickly get the cash you need. Is it safe to use this option? What is worth knowing before taking out a title loan?
What is a title loan?
A title loan is a solution for people who have already committed and which no bank or loan company will want to borrow money. It is drawn from a private person understood as a person having registered activity as a loan company. It can be not only a family member or friend, but also a completely foreign person. The rules of borrowing from private persons are regulated in the provisions of the Civil Code.
What is the title loan?
A person providing a title loan invests his savings, whereas the borrower can negotiate the offer. When making such a commitment, the parties may directly set the criteria for cooperation. Regardless of whether it is the amount needed for a small expense or a large investment, it is possible to set convenient conditions with the lender, and thus to develop a solution that is beneficial to both parties. In the case of title loans, lenders are known as investors. Loans are provided through loan services, parishes and even portals that offer so-called social loans.
The advantages of a title loan
The demand for non-bank loans is constantly growing. For borrowers, this is a great opportunity to get money that they can not borrow from a bank, a loan company or even relatives on favorable terms. It is also an attractive solution for investors due to the many benefits it brings. People who borrow money get negotiated with the percentage party. One of the greatest assets is undoubtedly the direct contact of the lender and the borrower. Thus, the parties can communicate with each other and set the terms of the offer, which makes the transaction beneficial to everyone.
No bases or registers
You can also apply for a personal loan if you have other loan commitments. In the case of a bank loan, it is necessary to provide a lot of relevant information, collect all the required documents, and this does not guarantee a positive conclusion of the application, because the creditworthiness is assessed on the basis of scoring. title loans do not require submitting a document file to prove the amount of your earnings. What’s more, even the BIK or KRD register is not checked. It is true that many loan companies also try to attract customers by ensuring that they provide loans without checking the registers. In practice, however, many of these companies use other databases of this type, which may result in the rejection of the loan application. In the case of title loans, no registers are checked, and thus any person who needs quick cash can take advantage of this opportunity and make a commitment.
A loan for indebted people?
title loans are also willingly taken by indebted people who have negative bank decisions or entries in the registers that make it impossible to take a loan. A title loan may therefore be the only solution to deal with financial problems. An additional advantage is the saving of time and the lack of spending it on trying to take out a loan. While banking institutions require a lot of time to complete any verification, as well as to supplement documents with a positive decision, in the case of title loans the whole process is very fast and most of the paperwork turns out to be unnecessary. People in a difficult financial situation can take advantage of title loans as they not only have a good chance of getting the cash they need, but they can also receive money in a really short time.
Are title loans safe?
Due to the fact that such loans are gaining in popularity, you can find more and more offers beginning with the words “I will grant a title loan …”. However, such declarations raise many objections – the person providing the loan is not a credible investor and will usually offer inconvenient terms of incurring the obligation. It’s no wonder that people who can not get the money they need are usually responsible for such ads. In the case of loans granted for an amount exceeding PLN 500, it must be kept in writing. Thanks to this, it will be possible to assert your rights in court, if necessary. However, it is best not to take a loan from an unknown investor, but use the services of a financial platform that verifies its lenders and thus is able to guarantee safe and convenient conditions.
Where to look for a title loan offer?
More and more people are deciding to take advantage of the possibility of borrowing from private investors, and not only because of price increases in banks or some companies. It is also a more convenient solution. However, it is worth finding a website that has its own investor base, instead of looking for a lender on your own. A foreign, unverified person is not a credible lender. On the other hand, platforms offering title loans deal with the building of a database consisting of only verified and trustworthy people. Thanks to this, everyone can count on some financial support. It is worth using this kind of platform for one more reason – such a base of investors is always developed. Thus, it is possible to select a borrower in a convenient way to ensure that both parties are as satisfied as possible and that they are not exposed to unnecessary risk. A wide base is also often an opportunity to get even a few offers for one query, thus choosing the best solution for yourself.