Car title loans are becoming a more popular method of borrowing money. There are some significant differences between a car title loan and a more traditional loan from a bank or credit union. Auto title loans are secure loans that are not based upon a person’s credit and employment history. Companies like Embassy Loans of Florida have helped thousands of customers borrow money to help take care of financial emergencies. Here is how car title loans work.
The Application Process
Most title loan companies, like Embassy Loans, allow potential borrowers to apply in person or online. Filling out an application takes just a few minutes. If you fill out your application online, a representative will contact you very quickly. They will ask for certain documents that you must produce in order to complete the processing of the loan. Obviously, you will need the title to the vehicle, a form of identification (driver’s license), proof of where you live (mortgage statement or lease agreement), proof of insurance, and vehicle registration. Depending on who you work with, there may be other documentation needed. Once everything is provided, the loan processing can continue.
Assessing The Vehicle
When the paperwork is taken care of, the title loan company must then appraise the vehicle to see how much it is worth. Your vehicle needs to be in good condition and, in most cases, must be less than 10 years old. Title loan companies will normally only loan a certain percentage of the vehicle’s full value. If your vehicle is deemed to be worth $10,000, you might be able to borrow $5,000. With the paperwork done and the car assessed, the final loan documents are drawn up and the loan is finalized.
Quick And Easy
One of the big benefits of a car title loan is the ease of application and processing and the time it takes for a borrower to receive his or her money. On most occasions at Embassy Loans, a customer receives the money within an hour of filling out the application. Many are completed within a few hours. Borrowers can receive payment via check and many opt now for electronic deposit into a bank account. Once the check is issued or the electronic payment is received, a borrower is then free to use the money as they please.
Paying It Back
Car title loans are short-term loans that should be repaid as quickly as possible. Most title loan companies will have several options from which to choose in order to repay your loan.