If you own a vehicle that is paid off, you may qualify. Most lenders, like Embassy Loans of Florida, will require that a vehicle be 15 years old or newer. In some cases the car or truck can be older, but the newer the vehicle, the more likely your loan will be approved. There are also cases where a vehicle can still be used as a collateral even if there are still payments remaining on it.
The process begins with the filling out of an application. Embassy Loans, like many title loan companies, lets applicants fill out their application online. Once the application is complete, applicants must provide a few forms of documentation. They must verify their identity, residency, and prove that they own the vehicle by providing its original title.
After the lender verifies a borrower’s documentation, the vehicle is then assessed for its value. Most lenders use the typical blue book values. The vehicle must be in running condition with a limited amount of damage. If the borrower defaults on the loan, the lender will take possession of the car or truck and sell it. The lender needs to make sure that the vehicle has some resale value in case it must be resold.
Car title loans are not based upon credit. Borrowers with bad credit scores and bad credit history are still eligible for auto title loans. Since there is collateral, these loans are not based solely upon credit. For those who have had their credit damaged by a job loss, a car title loan is likely the only way money can be borrowed.
The processing for car title loans is usually an hour. Many applicants receive their money the same day that they filled out their application. Once they receive the check, borrowers can use the money for whatever they like. Borrowers need to follow the terms of the repayment plan or they face losing the vehicle by repossession.