There are many things to consider when looking to get a car title loan. There are many people who are not educated on car title loans, what they are, and how they work. A vehicle title loan is simply a loan issued based on a form of collateral. In this case, a vehicle serves as the collateral. Title loan companies, like Florida’s Embassy Loans, offer loans to applicants based on a few simple factors.
First and foremost, you need to own a vehicle. You must possess a clear title to the car or truck. That means there can be no liens against the vehicle. In most cases, the vehicle needs to be completely paid. There are some occasions when a lender may loan money to someone whose vehicle is almost entirely paid off.
Another consideration is how much money you need to borrow. Most car title loans are for smaller amounts of money, usually ranging anywhere from $600 to $3,000. Title loan companies will inspect your vehicle and assess its value. They will use the Kelly Blue Book or NADA to determine your vehicle’s value. You should be aware of how much your vehicle is worth and how much you need to borrow.
If you have poor credit, an auto title loan may be the only answer to your financial problems. Most title loan companies do not require a credit history check in order to finalize the loan. With the vehicle providing the collateral necessary for the loan, there is no need for a lengthy credit check or background check. The lack of these background checks speeds up the title loan process. Most title loans can be completed within an hour. Many are completed the same day that the application was started.
Make sure you have a plan for paying the loan off. The quicker that you pay it off; the more you will save in interest and finance charges. If you run into a financial situation and do not have any answers, consider an auto title loan to solve your emergency. The process is simple and can get you the cash you need in a hurry.