• All lending institutions have strict rules and regulations about lending to their customers. As a result, when you apply for a short term loan, banks usually verify your credit account very carefully. If you don’t have a good credit account, you will immediately be refused the loan. However, cash-for-property-or-car shops that deal with deed loans do not check your credit history. They will take your title as a guarantee for the loan and you can work out a repayment option with them.
• Most banks have a higher repayment rate for creditless customers. Along with a higher interest rate, they also ask for co-signers and guarantors who will sign on to secure your loan. When you take a loan with the cash-for-property-or-car shops, all of this is bypassed completely. The loan shop will just require your title and it will use it as security for the loan they provide.
• You can hand over property title or even a car title provided you own the property or asset outright. There should be no outstanding payments on the asset to make your eligible for the loan. Once you pay off the loan, the deed is returned to you.
• You may not get the whole value of the title deed that you have given to the lending shop. However, you will immediately get the amount of cash that you want. The loan amounts are smaller as the pawn shop has to take on the risk of lending you the money.
For some people, a good easy deed lending company may be the only financial institution that will lend them money. They are a valuable resource in the form of a lending organization that will lend to any variety of customers provided they own the asset.
