There are many potential borrowers these days that have limited alternatives. With the tightening of lending standards over the last decade, borrowing from banks and other financial institutions has become much more challenging. Car title loans have become more popular as a result. Some view these loans in a negative light, but if a borrower has a plan, a car title loan can be the perfect solution to money problems.
Understanding a Car Title Loan
A borrower must first understand a car title loan. A vehicle owner offers the title to a car or truck as collateral for a loan. Like any loan, the borrower will repay the amount borrowed plus interest and do so in a timely fashion. Should a borrower fail to repay the loan, the lender has the right to take ownership of the vehicle. Lenders that repossess a car will usually sell it to recover any losses.
It is wise for someone considering a car title loan to consider any alternatives. Is it possible to obtain a personal loan or maybe borrow from a relative? Car title loans are a good option for those who have poor credit or even no credit because most lenders do not check credit history.
Have a Plan for Repayment
Embassy Loans has helped thousands of customers obtain car title loans. Repossessing a borrower’s vehicle is rare. That is because borrowers have a plan for repayment before they take out the loan. Embassy Loans can customize loan terms and repayment plans to ensure loans are repaid. There are no prepayment penalties either, so borrowers can pay off their loans before the due date and save money on interest. The faster a car title loan is paid off; the less interest a borrower ends up paying.
How to Apply
At Embassy Loans, the application process is simple. Those looking to borrow can fill out an application in person or online. The application takes just a few minutes to complete. Applicants will be asked to submit some documents for verification. An applicant must possess the title to the vehicle. Once verified, the lender will access the borrower’s vehicle for its value, and then a loan agreement is drafted. The borrower signs the contract and then receives their money. This entire process, from application to receiving money, can take as little as an hour. The speed of a car title loan is one of the big reasons why they are so popular.