It’s a buyers’ housing market with historically low interest rates and great prices on homes around the country. While many people are becoming homeowners for the first time, many of those same people are often left scrambling when it comes time to actually move into the house. They sometimes forget about associated costs like decorating and furnishing the home. After spending thousands of dollars on a home, it might be hard to find the funds necessary to buy couches, chairs, beds, and more. You might not be aware, but you may be able to use your vehicle to help.
Do I Qualify For A Car Title Loan?
If you own a vehicle that is paid off and has no other liens on the title, you qualify for a car title loan. You can borrow money from a title loan company like Embassy Loans of Florida using your vehicle as collateral. Filling out an application either in person or online will begin the process.
Processing A Title Loan
Once you finish the application, you will be asked to present several forms of documentation. You will need to verify who you are and where you live. You must also present the title to the vehicle. When everything has been verified, Embassy Loans, like other title loan companies, will assess the vehicle’s value. Most lenders use a blue book value. Borrowers will be able to borrow, in most cases, about 50 percent of the value given to the vehicle. If a borrower fails to repay the loan, the lender can sell the vehicle and recover most, if not all, of the losses.
What About Credit Checks?
A title loan is not based upon credit. It is secured by a vehicle and if a borrower fails to make the necessary payments, the lender can take possession. Because there are no credit checks, the processing of a title loan is very quick. Most can be completed within an hour and many are done in just a few hours. A car title loan is a very quick and easy way to access cash in case of an emergency, such as buying furniture before you move into your new home.
Better Than A Credit Card
Many people would opt to buy their furniture with a credit card. That is fine but consider that you will probably pay more in interest to your credit card company in the long run. Your car title loan is a short-term loan that you will have paid off long before you pay off the balance of a credit card.