The best borrowing option for unemployed is “title loan” for which bank uses his vehicle as collateral. It means that the lender uses the value of borrower vehicle as a security against loan. For loan qualification and approval, the major concern is the proved ownership of that vehicle. Title loans are considered appropriate solutions for unemployed individuals, like teachers, students and many others. The need of good credit history and worries about job can easily be solved with title loans. Such loans are secured by vehicles and fulfill demand of cash for unemployed persons. The high preferences for title loans are because of their feasibility to attain loans comparatively conventional bank loans. The acquisition of title loan is possible in case of clear title holding with vehicle of potential borrower. The lengthy procedures of funds possession from banks and credit unions are frustrating because they are unable to ensure the loans provision. In this case, a car or a motorcycle vehicle is the best options for unemployed persons to use as security against title loans. Car and motorcycle loans are helpful in attainment of quick cash facility. This is a sensible method of change-of-hands accounting wherever the car title loan corporation keeps the title until the loan on the car is paid back. But these companies call for regular income and even sometimes accept any checks as evidence.
Many title loan companies agree to unemployment checks or other income sources as adequate confirmation of earnings. Even they won’t run credit checks that ads plus point for unemployed. These loans are accessible everywhere from thirty days to several years. The legal procedures consist of few pieces of documentation and an application to be filled out by borrower.
The brief income verification is performed for which person will be asked to show the:
• the physical appearance of vehicle
• the vehicle’s title
• Form of photo recognition.
Some lenders tender loans to the unemployed devoid of regular income proof or a lot of documents if borrower puts a considerable amount of money like 25 per cent or more than it. There are many other sources of loans for unemployed like “pawn brokers” in which the person cannot give up the item until he pays the loan back. For this, the Credit is not affected in case of bad defaults. The other one is “Payday” loan that are also short term but costly as compared to title loans. Debt consolidation loans are also offered to unemployed that make debts payment easier particularly when there is no inward cash. It is similar to title loans because it provides facilities to dodge creditors and in getting lower rates of interest.