Car title loans are an effective means of borrowing for many people. Lenders, like Embassy Loans, accept your vehicle title as collateral for a loan. If you own the vehicle outright, the loan process is very easy. If you have payments remaining, you can still borrow, but it may be a bit more challenging. Car title loans are taken out for a short term, and when repaid, borrowers receive their title back. There is much more that the average person does not know about auto title loans. Here are four interesting facts about them.
- Title loans are more common than ever. Because of the problems with the U.S. economy in the mid-2000s, traditional borrowing became much more involved. Banks and other financial institutions tightened up their lending practices so that only those with outstanding credit were able to borrow. You secure a car title loan on a vehicle. With the title being used as collateral, there is no need for a borrower to have great credit.
- There are no credit checks. Because lenders fo not base car title loans on credit, the processing time is decreased. Traditional bank loans often take several weeks to process while research is carried out on a borrower’s credit history. There is no need to check credit with a car title loan. If a borrower fails to repay the loan, he or she can have their vehicle repossessed.
- There are fewer repossessions than you might think. All loans are risky. Lenders may have a borrower with stellar credit, a significant income, and many assets. They can still default on a loan. Plenty of people did during the financial crisis that rocked the U.S. during 2008 and 2009. Car title loans are risky, but not as many borrowers default as one may think. Estimations are that only 11 percent of people who take out a car title loan will reach the point where they have their vehicle repossessed.
- Embassy Loans can process your loan in as little as an hour. In many cases, Embassy Loans can get you the cash you are looking for in a very short amount of time. They can process some loans quickly, and the borrowers even receive the money on the same day. Because of a lesser amount of paperwork involved, car title loans close much faster than traditional bank lending. It is one of the many advantages of a car title loan.