Using Your Car As Collateral For A Loan

Car as collateralIf you are having difficulty trying to borrow money, you can use your vehicle as collateral in an effort to secure funds. Borrowing from traditional lenders such as banks and credit unions these days is much more difficult than it was even 10 years ago. Lenders have placed more restrictions on borrowing and, as a result, fewer people are able to qualify for conventional loans. If you own a vehicle, though, you can use it to obtain a loan.

To obtain a car title loan, you must own a car that is paid off, or almost paid off in some instances. The vehicle’s title must be clear, meaning there have been no liens placed on it. If this is the case, you can use the vehicle to get a loan. Using the vehicle for a loan does not mean that you do not get to use it. You can still drive it; you are just using it as collateral to obtain a loan.

Obtaining an auto title loan is easy. You can visit a title loan company, such as Embassy Loans of Florida, and fill out an application. You can also visit their website, www.embassyloans.com, and fill out the application online. The application takes just a few minutes to complete.

When the application is finished, an Embassy Loans loan expert will need to verify your identity and your residency. You must provide a form of photo identification and something that proves where you live. Normally, applicants will use a utility bill to prove their residency.

Once that is complete, you must show the title to the vehicle that you will use as collateral. Embassy Loans will verify that the title does match the car or truck. Then, the vehicle will be appraised for its value. Embassy Loans has over 30 different inspection stations around the state of Florida where applicants can go to have their cars appraised.

With a value established, the loan can be finalized. The paperwork is drawn up and all that is left is for the applicant to pick up his or her money. The entire process normally takes between an hour. Many applicants receive their money on the same day that they fill out their application. This is much different than a traditional loan, which often takes several weeks to complete.

When you find yourself in need of quick cash, consider using your vehicle to obtain a loan.