A car title loan is a short-term loan you can obtain if you own a vehicle. You use the actual car or truck as collateral. Embassy Loans, a large consumer finance, and title loan company, prefers that vehicles are no older than 10 to 15 years and have no outstanding finance on them. Vehicles still being financed can still qualify as long as there is equity. The process of obtaining a car title loan is easy. A prospective borrower fills out an application and then submits a few forms of documentation. They must be able to prove that they own the car. This process is very easy as long as you have the vehicle title to hand. Embassy Loans assesses the value of the car and then draws up a loan agreement with the borrower. In many cases, a borrower can obtain their money within a few days of filling out their application.
Getting a car title loan is a simple process that can help an individual in a time of financial need. In most cases, a car title loan can be very helpful. There is a worst case scenario, though. Here’s a look at good news and the bad news related to car title loans.
The Worst Case Scenario
We start with the bad news. The worst thing that can happen when you take out a car title loan is that you fail to repay it. When you do so, the lender can take possession of the vehicle. Without your car or truck, you lose the ability to get to and from your job. You want to do everything you can to avoid having your vehicle repossessed.
The Best Case Scenario
There are several benefits associated with car title loans. If you are in a financial emergency, getting quick access to the money you need can help you avoid catastrophe. If it was a medical bill or a bill for replacing your furnace in the dead of winter, you could pay your bills and rest easy knowing you’ll be warm and fed. Using the car title loan and easing some of your financial burdens will help to lessen the stress and emotional difficulties associated with cash problems.
Paying off some of your bills will also enhance your credit rating. A better credit rating, in turn, will help you in numerous ways in the future including when you want to borrow again. A better credit score could even improve your employment prospects as many employers check credit reports before making hiring decisions. Obtaining a car title loan and repaying it on time can be a boost to your overall financial status.