With all of the different types of loans available, one that is gaining in popularity is the car title loan. When conventional borrowing fails, car owners can use their vehicle as collateral to obtain a loan. Here’s how.
Qualify For An Auto Title Loan
If you own a vehicle that is completely paid for (or almost paid for in some cases), you can obtain a car title loan. The title must be clear meaning there cannot be any liens against it. If so, you qualify and can fill out an application to start the process.
To obtain an auto title loan, you will need to prove your identity and your residency. That is easily done by bringing a driver’s license and a utility bill that shows where you live. You must also bring the title to the vehicle. Lenders, like Embassy Loans of Florida, will check to make sure that the title matches the vehicle.
Appraisal And Payout
The vehicle being used as collateral must be assessed for its value. This is important since it will determine how much can be borrowed. Once this step is complete, the loan terms and documents can be finalized and a borrower can receive his or her money.
The lender will keep the title to the vehicle. However, you get to keep the vehicle. Should you fail to repay the loan, the lender can take possession of the vehicle since it holds the title. The lender can then sell your car or truck to recover the money that it lost.
You do not have to have a good credit history in order to obtain a car title loan. Since a vehicle is being used as collateral, lenders do not care so much about credit. They care more about the vehicle and a borrower’s ability to repay the loan.
Car title loans are easy to obtain, as well as fast. A typical auto title loan can be processed, from beginning to end, within 30 minutes. Embassy Loans, on many occasions, will disburse funds to a borrower on the same day in which an application was started.
For borrowers that need money in a hurry, car title loans are the perfect answer. They are also great for those who do not have a good credit history. Conventional loans from a bank or credit union depend heavily upon a borrower’s credit history and how he has paid his bills in the past.