Car title loans are becoming more popular these days as individuals search for alternative methods of borrowing money. Conventional loans are often too hard to obtain due to stringent lending requirements. The average person will find it much harder these days to borrow from a bank or credit union. Lending standards have changed as a result of the credit crunch of a few years ago. Car title loans have increased in popularity because the loans are much easier to obtain. Like any type of loan, borrowers should make sure they find the right lender.
How Car Title Loans Work
If you own a vehicle that is completely paid off and has a clear title, you are eligible for a car title loan. It is a secured loan where the vehicle is used as collateral. Just like conventional loans, there are many title loan companies. Embassy Loans of Florida, for example, has helped thousands of people obtain cash based upon the value of their vehicle. The process for obtaining a title loan is pretty easy.
Those interested and eligible fill out an application to begin the process. Applications take just a few minutes to complete. Applicants will be asked to verify their identity and their residency and must present the title to the vehicle. Embassy Loans, like other companies, will verify that the title matches the car. Then, the vehicle is appraised. The final loan documents are processed and the borrower can then receive the money. This whole process can take as little as a few hours and is normally completed within two days, much less time than conventional loans take to process.
Finding The Right Title Loan Company
When searching for a title loan company, look for referrals first. If anyone you know has taken out a car title loan, find out about their experience and if their lender would be a good choice. Do some research on different title loan companies. Look for those that are the most reputable. Read the testimonials of different companies to see what others think. You can also check to see if title loan companies are members of Yelp and Trust Spot. Make a list of all of the most reputable lenders and their pros and cons. Just like conventional lenders, title loan companies will make you different offers with different rates. Compare the offers of different companies and make a solid, well-informed decision.