For a young person with little credit history, conventional borrowing will be very difficult, but a car title loan can be an alternative. A title loan is secured by offering a vehicle as collateral. Students and young people who have cars or trucks with clear titles are able to utilize auto title loans to their advantage.
In a time of financial need, going to a bank or credit union can prove fruitless. A conventional loan will require that you have a job and the income necessary to repay the loan. You must also have a good credit rating and a solid credit history, something you may not have since you have not had the time to build it. Formal lending institutions will take several weeks to go through the process of determining whether or not you are a worthy loan candidate. Most often, you will be denied.
With a vehicle title loan, the process is much different. At Embassy Loans of Florida, for example, the process begins by completing the loan application. You will be required to show a form of photo identification and you must have the title to the vehicle. You will have to prove your residency. A utility bill normally does the trick. Once your identity and residency has been verified, you will have your vehicle inspected by Embassy Loans.
The inspection involves matching the vehicle to the title as well as assessing the value of the car or truck. The value of the vehicle will determine how much can be loaned to the borrower. Once this is complete, the loan can be processed and you can receive your money. Normally, a title loan can be processed in 20 mins to an hour. In many cases, a borrower can fill out the application and receive the money within the same day.
The great thing is that someone with little to no credit history can receive the money to help them through a financial emergency and then repay the auto title loan to help build a solid credit background. The repayment of the loan will help them to secure other forms of credit in the future.