Online car title loans are becoming more popular as lenders use the technology of the Internet to allow individuals to use their vehicles to borrow money. Companies like Florida’s Embassy Loans have helped thousands of customers access cash for a variety of things including home improvements, college, medical bills, and emergencies. Here’s how you can obtain an online title loan.
Fill Out an Application
Once you have selected a lender like Embassy Loans, you must fill out their online application. It will only take you a few minutes. Once it is completed, a representative from the title loan company will contact you for some necessary documentation. The lender will want to know exactly who you are and will want information about the vehicle also.
Documentation and Verification
Many lenders will use the services of a third party to visit you and collect some documentation and verify some information about your vehicle. To complete the title loan process, you must present this third party representative with the title to the vehicle. You may also be asked for your driver’s license as well as other documentation. The third party rep will then proceed to photograph your vehicle. You may be asked to start it up and drive it for a few minutes just to verify that it is in good working order. Once this process is complete, all of the documentation, photos, and any forms are sent back to the lender.
Processing the Loan
With the information gathered from the third party representative, the lender will then evaluate the vehicle in order to establish a value. It is this value that will determine how much an individual is able to borrow. Most title loan companies will only allow individuals to borrow between 30 and 50 percent of the total value of the vehicle. This protects the lender should the borrower fail to repay the loan.
For example, a vehicle is determined to be worth $20,000. A title loan company will allow an applicant to borrow up to $10,000 maximum. If the borrower defaults on the loan, the lender needs to sell the vehicle for at least $10,000 to recover its losses.
Once all the final loan documents are signed, the title loan company will release the money to the borrower. Many lenders are using direct deposit these days and deposit the money right into a borrower’s bank account. Individuals can receive a check as well. Normally, the entire process from beginning to end can take as little as an hour. This speed is one of the big advantages of doing a car title loan.