Car title loans have become a more attractive borrowing option for many. They are relatively easy to obtain and, unlike traditional bank loans, do not require mounds of paperwork. If you own a vehicle, you can qualify, but before electing to go through the process, there are a few things you should consider.
- How much money do you need to borrow?
Most car title loans are for a few thousand dollars. If you have a short-term financial emergency in that range, an auto title loan may be the answer. If you are trying to buy a $30,000 boat or pay off $50,000 worth of debt, you are probably going to be out of luck. Car title loan companies will allow you to borrow approximately 50 percent of the value of your vehicle. Depending upon the year, make, model, and condition of the vehicle. So it’s easy to see why most car title loans are for a few thousand dollars.
- How quickly do you need the money?
Embassy Loans can process most title loans in an hour. You fill out an application to begin the process. Applicants must submit a few forms of documentation. Your vehicle will be assessed for its value, and the borrower then receives the money. There is no need for a credit check since the vehicle itself is the collateral. The amount of paperwork necessary to complete the loan process is therefore dramatically reduced, and as a result, processing of these loans is fast. When time is of the essence, a car title loan is a great option.
- Do you have alternatives?
In the case of a financial emergency, do you have any other means of acquiring what you need? You may be able to borrow from a 401k plan, for example, or you could take out a second mortgage if you are a homeowner. Payday loans are an option although they are usually for only a few hundred dollars and need paying back quickly. It may be possible to borrow from family or friends also. Consider all of your options before committing to a car title loan.
Once you have considered your options and decided that an auto title loan is right for you, let Embassy Loans help. With over a decade of experience, Embassy Loans has tens of thousands of satisfied title loan customers. With low interest rates and customized loan lengths, Embassy Loans can help you get through your financial emergency.