When there are major financial decisions to be made, people often seek out financial institutions for help. Ever since the economic downturn that started in the late 2000s, banks and credit unions have been much more stringent in their lending practices. Gone are the days of the no-income, no-asset loans, as well as loans for borrowers with bad credit. Without a solid credit history and a stable employment history, you are likely to be declined for a loan from your bank. That is why car title loans have become so important.
Car Title Loan Basics
If you own a vehicle, you may qualify for a car title loan. The loan is short-term, where your car serves as collateral. You receive access to an amount of money that is to be paid back over a period of months offering the title to your car as security for the loan. You do not actually turn over the car or truck just the title. You can continue using your vehicle while repaying the loan.
How the Loan Process Works
At Embassy Loans, potential borrowers fill out an application (which you can complete online) to begin the process. Once completed, you will be asked to supply some documentation to verify your identity and to prove that you do own the vehicle. After verification, the loan company assesses your vehicle for its value (the appraisal). Embassy Loans can then draw up the final loan agreement for your approval. Once signed, you have access to your money. The process can take as little as an hour.
The Benefits of Car Title Loans
Because the loan is secured by a vehicle, there is no need to analyze a borrower’s credit history, saving a significant amount of time. Not requiring a credit check is one of the reasons why the loan process can be completed so quickly. A borrower’s past credit plays no role in the process, and this benefits those who do have a subpar credit history. A second advantage, already mentioned, is the speed and ease of the entire loan process. When you need to pay the mortgage or an emergency medical bill, a car title loan can put the money in your hands within a day or two. Loans from financial institutions typically take several weeks to process.