What Exactly Is A Car Title Loan?

What is a title loan Car title loans are fairly self-explanatory, at least as far as what they are and what they can do for you. If you own a vehicle, you can use the title to that car or truck as collateral for a loan. You can attempt to obtain a car title loan from a traditional lender like a bank or credit union, or you can choose from a number of companies that specialize in car title loans such as Embassy Loans of Florida.

An auto title loan is great when you need to access some extra cash. You may use one to meet your monthly financial obligations, or to help pay for college expenses, a summer vacation, or any number of other expenses. Whatever the reason, a car title loan is pretty easy to obtain.

In order to borrow money using your car title, you must own the vehicle outright and have a title that has no liens. If so, you can qualify for this type of loan. You can visit a title loan company like Embassy Loans or fill out an application online to start the process. An application takes just a few minutes to complete.

When the application is finished, Embassy Loans can begin processing the loan. They will have to verify your identity and your residency. You can do so by bringing a photo ID and a utility bill. Once verified, you must present the title to the vehicle that you will be using as collateral for the loan.

Embassy Loans will inspect the vehicle and the title to make sure they match. The company will also assess the vehicle’s value. Once a value has been established, the loan can be finalized. The loan documents are signed and the borrower receives his or her money.

These short-term loans have their advantages. One is that a borrower does not have to worry about his credit history or credit score. When processing a car title loan, companies like Embassy Loans do not need to check a borrower’s credit. The loan is secured by a vehicle so there is no need for the lengthy background and credit checks associated with more traditional loans.

The fast processing of a car title loan is another advantage. Borrowers can access cash very quickly. At Embassy Loans, most vehicle title loans are processed within an hour. Many are completed and the borrower has his or her cash on the same day that the application was started.