With all of the different loans available to people, the car title loan is one that many people do not know much about. Car title loans are becoming more popular as a method of accessing emergency cash. Here are some of the most frequently asked questions about auto title loans.
What is a car title loan?
It is a loan secured by a vehicle. A person must have a vehicle that is completely paid for and has a clear title. In some cases, a car or truck may be almost paid for and lenders will grant a loan. The car or truck is used as collateral to complete the loan.
How do I apply?
Many title loan companies, like Embassy Loans of Florida, make online applications available. People can apply online or visit a lender personally and fill out an application onsite. Applications normally take just a few minutes to complete.
Are there any requirements?
Well, you must have a vehicle and possess the vehicle’s title. The title must be free of any liens. Most lenders will require that the vehicle have a blue book value of a certain amount, such as $2,500. Also, many lenders will require that the vehicle be less than 10 years old.
What are the credit requirements?
Since the loan is secured by a vehicle, there is really no need to do any credit checks. In fact, most title loan companies do not do any credit, employment, or any other type of background check. If you possess a vehicle with a clear title, you qualify for an auto title loan.
How long does it take to get the money?
The car title loan process is very fast, unlike other traditional bank loans. The typical title loan can be completed in less than a day. Once an application is completed, title loan companies need to verify a person’s identity and their residency. Then, they examine the title and the vehicle. Once they have come up with a value for the car or truck, the loan can be finalized. Most title loans are processed within an hour. Borrowers can get their money as soon as the final loan documents are signed.
How much can I borrow?
The amount that you borrow is linked to the value of your vehicle. If you have a financial emergency that requires $2,000, your vehicle’s value will determine whether or not you can borrow that much.