If you have found yourself in a situation where you have needed to borrow money, you may have thought first of a traditional bank loan. While thousands of bank loans are processed every day, they are not the only type of loan available to borrowers. There are pawn loans, payday loans, personal loans from friends and family, and more. One of the lesser known options for borrowers is the car title loan, which provides some advantages, especially for those needing short-term access to cash.
Car Title Loans – The Process
Applying for a car title loan is easy. If you own a vehicle that is paid off or near being paid off in full, you may qualify. You start the process by filling out an application. At Embassy Loans of Florida, prospective borrowers can fill out the application online or in person. Once complete, applicants must supply documentation that proves their identity and residency. They will also have to provide the title to the vehicle.
When the person’s identity and residency has been verified, title loan companies begin to assess the value of the vehicle that is being used as collateral for the loan. Most lenders will use common blue book values. With a value for the vehicle established, the loan terms and payment plan are drawn up.
Advantages Over Bank Loans
One of the big advantages that title loans have over traditional bank loans is speed. The entire processing of a title loan at Embassy Loans normally takes an hour. Often, borrowers receive their money on the same day they filled out the application.
One of the things that speeds up car title loan processing is the fact that a credit history is not necessarily needed. A car title loan is based upon the value of the vehicle, not on the borrower’s credit. Some lenders may run a credit report, but it is not the basis for the approval of the loan. Bank loans are based on a variety of factors, including a borrower’s credit history. Banks must take a great deal of time scrutinizing a credit report. This is why bank loans typically take several weeks to process.
Because of their easy processing and speed, car title loans are a great option for those who need to access money quickly. Auto title loans are also an option for those who struggle with bad credit.