In your search for immediate funds, it’s likely that you’ve already come across quite a bit of information regarding car title loans. However, it can be difficult to separate fact from fiction when it comes to these types of loans, especially since they differ in many ways from other, more traditional types of loans. With any loan, it is important to have a clear and accurate understanding of the loan and what you can expect from the application and through the repayment process.
Myth #1 – You Have to Give Up Your Vehicle for the Duration of the Loan
Contrary to what some people may believe, you do not have to give up access to your vehicle for the duration of the loan. During the loan process, you will give the lender your title, which they will hold on to until you have paid back the loan. However, you will still be able to drive your vehicle as you normally would. This can be especially important because you do not want to compromise your ability to get to work or to take care of family obligations while you are working to repay the loan.
Myth #2 – Good Credit is Necessary to Obtain a Loan
While it’s true that, in most instances, you need good credit to obtain a loan, this is not the case with car title loans. As a matter of fact, when it comes to car title loans, most lenders will not even look at your credit history. This can be useful in many respects. For example, if you have bad credit and are in need of access to funds, this can be a beneficial way to ensure that you access the money that you need. This also speeds up the loan process, with lenders such as Embassy Loans, one of Florida’s leading finance companies, able to approve loans within a 24-hour period – and sometimes within minutes.
Myth #3 – Most People Lose Their Vehicle with Car Title Loans
It’s only natural that one of the biggest concerns for most individuals is that they will end up losing their car if they take out a car title loan. However, the vast majority of individuals not only pay back their loan in time, but pay back their loan ahead of time, and are never at risk of losing their vehicle. Car title loan companies benefit when their customers pay back their loans, and will work with you to ensure that you get your title back as quickly as possible.
There is an amount of risk when it comes to taking out any loan. However, car title loans are a quick and effective way of receiving the money that you need, and are easily repaid so long as you are prepared to do so. As with all loans, it’s important to understand everything that the loan entails and to prepare yourself with knowledge prior to taking out the loan for the best outcome possible.