When you bought your vehicle, you probably never thought that it could become the one thing that could save you in a time of need. Sure, your car provides you with freedom, mobility, and a sense of pride, but it can also bail you out of a financial emergency. Here’s how.
What Is a Car Title Loan?
If you own a car or truck, you can borrow against it. A car title loan is a short-term loan that an individual can take out using his or her vehicle’s title as collateral. In most cases, it is preferred that the borrower owns the car outright, meaning there are no liens on the title. Embassy Loans, one of Florida’s leading consumer finance companies, can process car title loans where the borrower still has a balance on a car loan.
The Car Title Loan Process
To obtain a car title loan, you must first fill out an application, which can be done in person or online and takes no more than five minutes. Once you have completed the application, Embassy Loans requires a few forms of documentation. This requirement is to verify a borrower’s identity, and residency. Obviously, the borrower must also have the title to the vehicle. When the checks are complete, the next phase of the process is to assess the value of the vehicle. How much an individual can borrow is dependent upon how much the car or truck is worth. Embassy Loans uses traditional blue book values to determine how much your vehicle is worth.
Once a value has been set, the final loan agreement is drawn up. To protect itself, Embassy Loans only permits borrowing up to 50 percent of the vehicle’s value. If a vehicle is found to be worth $10,000, you may borrow up to $5,000, for example. After signing the loan agreement, an individual will receive access to his or her money.
Advantages of Car Title Loans
A huge advantage of taking out a car title loan is how quickly a borrower can get access to cash. At Embassy Loans, the entire process is often completed within an hour. You can generally take out car title loans much faster than a typical loan from a bank or credit union. Borrowers are also not subject to credit checks. Since a car title serves as collateral, the loan is not based upon an individual’s credit, and this is good news for those who have less than stellar credit histories.
While your car gives you plenty of joy as a form of transportation and even as a status symbol, do not forget that it can also help you when you are in a financial jam.