Car title loans have become a more popular form of borrowing over the last decade as banks and traditional lenders have tightened their lending requirements. For all the bad publicity that car title loans receive, there are several positives associated with them. Let’s look at three.
- Quick and easy access to cash. If you are facing an emergency and need money quickly, a car title loan is one of the fastest ways to get it. Vehicle owners put up the title to their car or truck in exchange for a loan. Since you are using your vehicle as equity, there is no need for the lender to do extensive background checks or credit checks of its borrowers. Lenders will check to make sure that the vehicle is worth at least as much as you want to borrow. Since there is much less paperwork involved compared to traditional bank loans, many car title loans, like those at Embassy Loans, can be completed in a day or two.
- There are no credit checks. One of the big reasons that many households cannot borrow money in traditional fashion is because their credit histories are too sketchy. Only those with pristine credit can qualify for mortgages, car loans, and other personal loans. A car title loan is secured by collateral reducing the risk to the lender. Embassy Loans, which has helped numerous customers through the years, does not require a credit check to complete the process of the loan. Car title loans are ideal for those who have bad credit.
- You keep your vehicle. Even though you put up your car or truck as collateral, you continue to use it while you repay the loan. In considering other secured loans like those at a pawnbroker, usually, the borrower must leave the property with the broker until you repay the loan. When you borrow using Embassy Loans, you keep your vehicle during the entire length of the loan agreement. Embassy Loans places a lien on the title to the vehicle and has the right to take possession of it if you fail to make your payments. These instances are rare.
While there are many loan alternatives these days, car title loans offer several advantages to borrowers. If you are searching for immediate cash, have bad credit, and own a vehicle that is paid off, you may be a perfect candidate for a car title loan.