Car title loans have become more popular over the last decade as an alternative to traditional types of lending. As banks and other lending institutions have tightened credit standards, borrowers have turned to other means of accessing cash in emergency situations. Car title loans are easy to obtain, and a borrower can have access to the money very quickly. Embassy Loans has helped tens of thousands of customers gain access to funds needed for a variety of purposes. There are several things to consider when choosing car title loans.
A potential borrower should first understand the basic principles of a car title loan. To take out such a loan, a borrower must own a car. The process works much better when the car is paid off in its entirety. Individuals can still take out car title loans if they have a balance on an existing car loan, but there should be substantial equity in the vehicle.
The process is very simple. Individuals fill out an application to begin the process. Embassy Loans applications are available online, and you can complete them in a matter of minutes. Applicants must submit certain forms of documentation like their identification and the title to the vehicle. The vehicle will be assessed for its value and then the terms of the loan are written up. There is no need to run a borrower’s credit history because the loan is secured by the title to the vehicle. In many cases, Embassy Loans will have the loan processed and get the money to a borrower within an hour.
Borrowers should also understand that the amount that can be borrowed depends upon the value of the vehicle. Also, most lenders will only allow you to borrow up to 50 percent of that value. So, if a car or truck is worth $10,000, for example, a borrower could obtain a loan for $5,000.
Borrowers should also note that they can continue to use their vehicle while they are repaying the loan. The lender will now have a financial interest in the vehicle until the loan is fully paid up. If a borrower fails to repay the loan, the lender then has the right to take possession of the vehicle. The lender would then sell it and try to recover any losses. So long as borrowers continue to make payments, repossession will not happen.