These types of loans can be used in a variety of situations such as medical emergencies, to help offset a job layoff, and more. Borrowers can visit a title loan company like Embassy Loans of Florida and start the loan process by filling out an application. Unlike loans from a credit union or a bank, the time to process an auto title loan is usually between 24 and 48 hours. Many borrowers will receive access to their funds on the same day that they began the loan process.
Borrowers must present the title to the vehicle and prove their identity and residency. The title loan company will appraise the vehicle for its value. Borrowers will receive a percentage of the value of the car or truck as a loan amount and the whole process can be finalized. There are no lengthy background or credit checks needed as the vehicle serves as collateral for the loan.
Before entering into a car title loan agreement, borrowers should make sure they have a plan for repayment. Title loans are short-term arrangements and the quicker one can pay off a loan the better. Paying off a vehicle title loan early can save a borrower from paying interest and fees. Those who take out a title loan should rearrange their budget for a few months to pay off the debt as fast possible.
Also before taking out a title loan, an individual should examine the need for the funds and determine if a loan is in his or her best interest. As mentioned, car title loans are great for an unexpected medical emergency or a home emergency, such as broken pipes or an electrical emergency. Those types of things need to be taken care of immediately. Taking out a car title loan to acquire the funds necessary for a vacation may not be in the best interest of the borrower. If a borrower does choose to take out a car title loan for a vacation or to pay for a new computer, the borrower must have a plan to pay the loan off and pay it off quickly.