While memories of the economic downturn continue to fade from the average consumer’s mind, banks and credit unions remember well the financial crunch that the entire country experienced. Many of these institutions suffered defaults on lines of credit and loans that they had extended to their customers. Some lenders particularly those that were hit the worst by the downturn had to go out of business or rely on a government bail out to remain viable.
Many lenders today are not willing to go through that kind of dilemma again even as the economy shows all of the signs of recovering well. These institutions put clients through rigorous approval standards that most customers simply cannot meet.
When you would rather bypass a stringent loan applicant process at a bank, you may wonder what other finance options are available to you. Your best option could involve using a free and clear asset that is already at your disposal right now.
Applying for Alternative Financing
The appeal of today’s alternative financing revolves around the less stringent application criteria. The lenders who extend secured, title, or cash loans in Jacksonville FL and elsewhere know that customers will most likely avoid defaulting because they have used collateral to which they have free and clear titles. They do not want to risk losing this asset and thus will pay off their loans accordingly.
As a consumer, this process is easier because it is based not on your credit score but rather than appraisal value of the asset you use to secure it. The lender may advance you close to or the actual full value of it, allowing you to get more money than what you might have at a bank.
Further, unlike a bank, the lender does not require an explanation for what purpose you will use the money. You can put it in a savings account, pay off medical bills, get your car repaired, or use it any other way you see fit. You do not have to explain the purpose in order to secure the loan.
In many instances, you can get your cash the same day you put in the application. You only have to wait an hour or less to find out if you are approved. A bank may take days or weeks to render a decision. Alternative financing tends to be more convenient for people in need of money today.