Car title loans have become more popular over the past decade as financial institutions have tightened up their credit requirements. Borrowers who could easily turn to their banks for loans are now having to find alternatives. As a result, the number of vehicle title loans has increased dramatically. These types of loans have received plenty of negative publicity giving many people the wrong impression. When used correctly, a car title loan is perfectly legal and safe for a borrower.
A car title loan is a short-term loan that requires a borrower to pledge the title to his or her vehicle as collateral. The lender places a lien on the title until the borrower pays the balance of the loan. Borrowers maintain use of their vehicle throughout the term of the loan, and once the loan is paid off, the lien can be removed from the title, and the borrower retains full ownership once again. If the borrower continues to make payments to repay the loan, the vehicle remains in their possession.
Some of the negativity surrounding car title loans stems from the belief that many borrowers default resulting in the loss of their vehicles. With any loan, there is a risk. When borrowers fail to repay their mortgages, banks can take possession of their homes. Yes, those who do not repay their car title loans are at risk of losing their vehicles, but the percentage of borrowers who actually do is tiny. Embassy Loans has a long history of helping borrowers access money using their vehicles. The lender has assisted tens of thousands of customers through the years and continue to do so today.
Car title loans also receive a bad rap for what many believe are exorbitant interest rates. At Embassy Loans, borrowers receive the benefits of both low rates and short terms. Most loans are paid off within 12 to 14 months. Borrowers can also repay their loan before their term ends as there is never a prepayment penalty. Doing so can save borrowers even more in interest.
Car title loans are legal, and they are safe. Those who need cash can quickly gain access to several thousands of dollars with a car title loan from Embassy Loans. The entire process can take as little as an hour, and there are no credit checks. There are no credit checks, and you can take out a loan secured on virtually any vehicle, as long as there is sufficient equity. Borrowers who make timely payments will have their loans paid off quickly and retain full ownership of their vehicles.