If you own a car that is 10 years old or less and it is paid off, you are a great candidate for a car title loan. You can go to a title loan company such as Embassy Loans and apply. Most companies, like Embassy Loans, offer their services online. You fill out an application in just a few minutes and then you are asked for some documentation. This usually includes your driver’s license, something that proves where you live like a utility bill, and the title to the vehicle.
Once your information has been verified, the lender will have to assess your vehicle and determine its value. Most lenders use some form of blue book value. You will not be able to borrow against the full value assigned to the vehicle. Most title loan companies will only allow you to borrow 30 to 50 percent of the vehicle’s value. Lenders do so because it is easier to recover any losses if the borrower does default on the loan.
Unlike traditional loans from a bank, the loan is not based upon the credit score and credit history of the borrower. Many title loan companies will not even run a person’s credit report as a requirement for the loan. The loan is secured by the vehicle and if the borrower does not repay it, the lender can take possession of it and then sell it to recoup any losses.
Most title loans are processed very quickly. At Embassy Loans, the typical auto title loan is completed and the borrower receives his or her money within an hour. It is one of the big advantages of taking out a car title loan, which offer borrowers a quick and easy source of emergency cash.