Car title loans, while not quite as common as traditional bank loans, are much easier to obtain. People who hold a clear title to a vehicle that is paid for or almost completely paid for are eligible for a title loan. Potential borrowers can fill out an application with a lender such as Embassy Loans of Florida. Once the application is complete, the loan processing begins.
Embassy Loans, like most title loan companies, will require some documentation in order to process the loan. Applicants will have to verify their identities as well as their residence. They must have a clear title to the vehicle being offered as collateral. After verification, the lender can then go about assessing the vehicle.
At Embassy Loans, borrowers may visit one of 21 different inspection stations located around the state. The first step in assessing the vehicle is to make sure that the title and the vehicle match. Then, the car or truck will be assessed for its value. This is an important step in the process since it determines how much money can be borrowed.
Once a value for the vehicle has been determined, the loan can be finalized. The loan amount as well as the payment, interest rate, and other terms are drawn up in the loan agreement. The final step is for the borrower to sign the agreement and collect the money. In most cases, this process is completed within an hour, much quicker than attempting to borrow from a bank or credit union.
What speeds up the process of a car title loan is the absence of any lengthy background and credit checks. Since a title loan is secured with a vehicle as collateral, the need for examining credit reports and background checks is unnecessary. This eliminates a good deal of time in the processing of a loan.
The result is an opportunity for the average person to borrow money quickly and take care of a financial emergency. Car title loans are perfect for those who may not have the best credit, since credit history is not a primary factor in approving the loan.