With traditional types of loans, borrowers are asked to provide mounds of paperwork so that the lender can decide whether or not the borrower is a good candidate to repay the loan. A bank will examine a potential borrower’s past including employment history and credit history. Lenders examine an applicant’s credit report taking note of the score as well as the history of payments. Those who pay their bills on time consistently have higher credit scores and are considered better candidates for loans.
Borrowers who have had trouble paying their bills on time end up with lower credit scores. As a result of a lower credit score, they often have a tough time borrowing money. This is where car title loans can help. A vehicle title loan can be used by borrowers with bad credit. This type of loan differs from a conventional loan because a car or truck is used as collateral. As a result, there is a lot less paperwork.
Since a vehicle is securing the loan, a title loan lender, like Florida’s Embassy Loans for example, does not need to examine much of a borrower’s past employment or credit history. There is no need for a credit check or an employment verification. If the borrower defaults on the loan, the lender takes possession of the vehicle.
Car title loans are easy to process and Embassy Loans usually completes a title loan within an hour. Once an application is completed, Embassy Loans verifies a person’s identity and residency. They will match the title to the vehicle and then inspect it to determine its value. With a value calculated, Embassy Loans can finalize the terms of repayment and issue the money to the borrower. Many of the loans completed by the company are actually done in less than a day.
For people with a bad credit history, the door to borrowing is not always closed. Anyone with a vehicle that has a clear title that is paid for, or almost paid for, can qualify for a title loan. Payouts are quick and borrowers do not have to worry about whether or not they will be approved.