A car title loan is not quite as popular as a conventional loan from a bank, although title loans are gaining popularity among those with bad credit. These types of loans are much easier to obtain than conventional loans, which require good credit as well as a positive background check. In today’s rough financial times, there are many households that just do not have the stellar credit and background histories necessary to obtain a traditional loan.
Car title loans are a little different when it comes to the amount of money that can be borrowed. Loans to purchase a house or car are typically much larger than a title loan, but the amount that can be borrowed with a title loan is directly dependent upon the value of the vehicle being used as collateral.
Those looking for a car title loan can visit Embassy Loans of Florida and fill out an application to start the process. The application can be filled out online or in person in one of their many conveniently located offices. The applicant will then be asked for photo identification, the title to the vehicle, and proof of residency. Embassy Loans must verify the identity of the borrower and verify that the title matches the vehicle.
Once this is complete, the next step is for Embassy Loans to inspect the vehicle and determine its value. The amount that can be borrowed depends upon what the car is determined to be worth. It is a good idea to get an idea of what a car is worth prior to applying for a title loan. There are a variety of online assessment tools that can help to determine what a vehicle may be worth. By estimating the value of a vehicle, a borrower will have a clearer picture of the maximum amount that can be borrowed.
After Embassy Loans determines the value of the vehicle, the terms of the loan can be finalized. The amount borrowed, the interest rate, and terms of repayment are all set, and the borrower can then receive his or her money. Most often, the entire process, from application to receiving a check, takes between 24 and 48 hours. Because the loan is secured by a vehicle, there is no need for background or credit checks. This cuts down on the amount of paperwork necessary to process a title loan. The result is a loan process that is much quicker than with a traditional loan.