Car title loan business growing
Apr 06, 2012 Philip Burgess
There is a growing population in the United States who live paycheck to paycheck. Many are approaching short term lending sources to obtain a little extra cash to make ends meet. Loans in exchange for car titles are a burgeoning business in the U.S. A consumer can give a lender their car title in exchange for money, depending on how much the car is worth. Most loan applications are approved within 24 to 48 hours. An added bonus to this exchange is the fact that the client is allowed to retain physical ownership of the vehicle. The market for lenders of this type is expanding. Now, many cash for title loans can be obtained online, with applications being cleared within an hour. Lenders may want to consider moving their company's operations to the internet to better serve clients and seek a rating from the Better Business Bureau to prove the firm is legitimate. SBWire claims that car title loans are now the most sought after loan due to the nature not considering credit history prior to the loan being distributed and the fact that they can be used as an alternative form of credit. CarsDirect touts title loans as beneficial to lenders because they are secured loans. The lender faces virtually no risk because borrowers are putting up collateral, which can be claimed if the loan cannot be paid back.