If you were not aware, there is a way to use your car, truck, or SUV to borrow money. Sure, you can drive to a bank or credit union and attempt to borrow, or you can use your vehicle as collateral for a car title loan. Car title loans have become more common over the last decade as a way for millions to borrow. With financial institutions tightening up their lending standards, many borrowers have been shut out of the market. Now, vehicle owners have an alternative.
What Is a Car Title Loan?
Car title loans are short-term loans secured by a vehicle or, more specifically, the title to a vehicle. You can use a car or truck as collateral in exchange for borrowing money. Car title loans are usually range from a few hundred dollars to a few thousand. Terms are short typically less than a year.
The Car Title Loan Process
If you own a vehicle with a clear title, you can begin the process of a car title loan by filling out an application. Embassy Loans allows customers to complete an application in person or online. Embassy Loans has helped tens of thousands of customers through the years, and our process allows them to complete their application either in person or online.
Applicants must submit a few forms of documentation to continue the process. Potential borrowers must possess the title to the vehicle. Once everything checks out, Embassy Loans will then assess the value of the vehicle. Evaluation is an important step as it will play a role in how much you can borrow. Most title loan companies allow applicants to borrow up to 50 percent of the value of the vehicle. With the assessment complete, a final loan agreement can be authorized.
The Advantages of Car Title Loans
Car title loans have some significant advantages over more traditional types of borrowing. With banks and other lending institutions making their borrowing standards stricter, people with poor credit histories often find themselves without the ability to get a loan at all. Processing a car title loan does not require a credit check, so this is a huge advantage for those who have poor credit scores.
Because there is no need for credit checks, the processing of a car title loan is much faster. A personal loan from a bank may take several weeks to approve because of the amount of paperwork involved. Embassy Loans completes many of its loans in an hour. Borrowers can typically have access to their money within a day or two of applying for the loan.