Online car title loans have gained in popularity in the last few years. As conventional loans have become increasingly more difficult to obtain, the market for alternative loans has grown. While online car title loans continue to help those in need of cash, they are still not as well-known as traditional loans from a bank. Here are some of the most frequently asked questions about online car title loans.
- What is an online car title loan?
An online car title loan is one that is offered by several lenders including Embassy Loans, one of Florida’s leading consumer finance companies. A vehicle is used as collateral for this type of secured loan. With today’s technology, the entire process can be handled online.
- How can I qualify for an online car title loan?
If you own a vehicle that has a clear title, you qualify for a car title loan. The car must be paid in full and most lenders require the car to be 10 years old or newer. There are some instances, however, where a vehicle is almost paid for or is older than 10 years and a car title loan can still be completed.
- How much can I borrow?
The amount that can be borrowed is dependent entirely on the value of the vehicle. Most lenders, Embassy Loans included, will use blue book values to come up with a value. You will be able to borrow 30 to 50 percent of the total value of the car. If the car is worth $10,000, you may be able to borrow up to $5,000, for example.
- How long does it take?
Unlike more traditional loans from a bank, an online car title loan can be processed very quickly. The time it takes really depends on the borrower. Once an application if filled out, the lender will need some documents to verify the borrower’s identity and residency. The title to the vehicle will also have to be checked for accuracy. Once the lender establishes a value for the vehicle, the final loan documents can be drawn up and signed. Many online car title loans can be completed in as little as an hour.
- Do I need to have a good credit score?
The short answer is no. A car title loan is not dependent upon credit, since the vehicle is used as collateral. Many lenders do not even run a credit check when processing a car title loan. This is another advantage of using this type of loan.