Car title loans have helped saved many from the brink of financial disaster. However, most people are not as familiar with the concept of an auto title loan as they are with traditional loans from a bank or a credit union. As a result, many people are unsure if they even qualify for a car title loan. Here is what you need to know.
Do You Own A Vehicle?
If you own a vehicle, you may qualify for a title loan. In most instances, the vehicle must be paid for in full. There are some cases where a vehicle owner may have just a few payments left and a title loan can be completed. There can be no liens or other encumbrances on the title. The title must be clear. Most title loan companies require the vehicle to be no more than 10 years old. If you meet these criteria, you can qualify for a car title loan.
What About My Credit History?
One of the advantages of taking out a car title loan is that the credit history of the individual applying for the loan is virtually irrelevant. Since the loan is secured by a vehicle, there is no need for a title loan company to do credit checks. If the borrower defaults on the loan, the lender can take possession of the vehicle and then sell it to recover any losses.
At Embassy Loans of Florida, for example, a person fills out an application and then submits a few forms of documentation to begin the process. The company will verify a person’s identity, residency, and make sure that the title is valid. Embassy Loans does not need to spend a lot of time running background, employment, or credit checks since it is using a vehicle as collateral.
Do I Have To Have A Job?
A title loan company, like Embassy Loans, will make sure that you have the means to pay back the loan. In most cases, a lender would like to see that a borrower has a job; however, if a borrower has significant assets or another source of income other than a job they can usually be approved for a car title loan.
How Long Does It Take?
If you qualify, you can fill out an application to start the process. As stated, you will need some documentation including the title to proceed. The title loan company will assess the value of the car and establish how much money you can borrow. The loan documents are drawn up and signed and then you can receive your money. The entire process from application to receiving funds is usually just an hour.