A car title loan, otherwise known as a title loan or an auto title loan, is a short term loan where the car title is utilized as collateral. It has become a popular source of funds because there is no requirement that the borrower should have a good credit rating and the amount is given to the borrower in less time compared to standard loans. The interest rates used are usually higher than those that are applied for conventional loans but a car title loan is beneficial in certain situations, such as when there is an emergency need for the funds. For some borrowers, the benefit is that the companies providing the vehicle title loan do not need to perform a credit check because the title already serves as security for this type of debt. This means that people can get a car title loan even if they have poor credit or no credit rating yet. Thus, it may serve as one of the sources of emergency funds that are available to people with low credit scores, including those who have filed for bankruptcy. Another primary advantage is that those who have low credit scores can utilize this loan as a way to raise their scores if they are not late in the repayment of the money and the company informs the credit bureaus. And as long as the borrower has already provided the needed documents, a car title loan can be provided in less than an hour. In addition to a car title, there are other prerequisites for this kind of loan. It is common for the lending company to make sure that the borrower has the capacity to repay the amount and therefore must have a regular income source, such as employment. The borrower must also show that the car is fully paid if it was bought through an auto loan and that there is no outstanding debt that utilizes the title as collateral. Meanwhile, the loan amount is dependent on the resale value of the car. Car title loan companies usually provide as must as 50 percent of the vehicle’s resale value, although some lenders may offer a higher amount. It should be noted that interest rates can differ substantially. Thus, it is often prudent to check the different fees and the interest rate that is being charged. It should be noted that each state has its own laws governing car title loans. It is to up to the borrowers to familiarize themselves regarding these regulations and to make sure that the fees charged are legal. Stop by http://www.ga-cartitleloans.com for more.