The economic conditions of the past six or seven years have led to some changes in the lending industry. After the housing bubble burst around 2008, financial institutions began tightening up their lending standards. Those who could have qualified for just about any loan offered found themselves as credit risks and unable to borrow from traditional lenders like banks and credit unions. These new standards led to the growth of other forms of lending, like car title loans.
What Is A Car Title Loan?
A car title loan is essentially a short-term loan that is extended using a vehicle as collateral. If the borrower fails to repay the loan, the lender can take possession of the vehicle. The lender can sell the vehicle to recover its losses.
Obtaining A Car Title Loan
Any individual who owns a vehicle that is completely paid for may be eligible for a vehicle title loan. In some cases, cars or trucks that are almost paid off may be used as collateral, but in either case the title to the vehicle must be clear of any liens. The first step in obtaining a car title loan is to fill out an application.
The Title Loan Process
A person who qualifies for an auto title loan can visit a title loan company, such as Embassy Loans of Florida, and fill out an application. Most title loan companies, Embassy Loans included, have websites where interested parties can also fill out an application. Completing an application takes just a few minutes.
Title Loan Processing
After a person fills out an application, he or she will be required to show proof of identity, residency, and present the title to the vehicle. Once the title loan company verifies a person’s identity and where they live, they can then move on to examining the vehicle. The title will be checked to make sure that the VIN number on it matches that of the vehicle. Once that is done, the vehicle is then assessed for its value. This will determine how much a person can borrow. The final terms of the loan can then be drawn up and signed by the borrower.
Quick Access To Cash
Most car title loans are processed within an hour. Many are completed the same day that an application is filled out. Because a vehicle is serving as collateral for the loan, there are no credit checks. Credit checks, and other background checks, are some of the reasons why conventional loans take much longer than a day or two.