Through the years, most individuals and families have been able to access needed funds by going to their financial institution and taking out a loan. Home loans, car loans, student loans, and others used to be easily accessible for most people up until the credit crunch that occurred in 2008. The ensuing financial crisis led lenders to tighten up their requirements and not lend as much.
As a result, people have started looking for alternatives when they need extra money. One of those alternatives is the car title loan. Car title loans have become an important source of funding for many individuals and families in need.
Because of stricter lending guidelines at banks and other financial institutions, car title loans have become very important. They offer those who may not have the income and credit history to take out a conventional loan the opportunity to access money for a variety of things. Car title loans are also processed very quickly. Here is how they work.
A person who owns a vehicle that is paid for can use it as collateral to take out a loan. The title to the car or truck must be free of any liens. If so, the individual can visit a title loan company like Florida’s Embassy Loans. The company has helped thousands of customers get their hands on extra cash to pay for emergency expenses, rent, utilities, and much more.
The process is very easy. Customers fill out an application to start. They will then produce documents to verify their identity and residency as well as prove that the title matches the vehicle. Once everything is verified, the vehicle will be assessed for its value and then the final loan agreement can be drawn up.
Most car title loans completed by Embassy Loans are finished in an hour. Many are done the same day that the application is filled out. Most conventional loans can take up to six or even eight weeks until the money is paid out.
Since a vehicle is being used as collateral there is no need for the lengthy credit checks that are associated with conventional loans. This is one of the big reasons why car title loans are important. They provide an avenue for those with poor credit to borrow money. Speed is the other key factor. For those that need extra money and need it fast, a car title loan can provide it.