Car title loans are becoming a more popular method of borrowing for many consumers across the nation. These types of loans are easier to obtain than most conventional loans for those who do qualify. Because of the ease of approval and the speed with which borrowers can obtain their money, more and more car owners are opting for car title loans.
How To Qualify
If you own a vehicle and possess its title, you can qualify for a car title loan. It is preferred that the car or truck is completely paid off, but some lenders will approve a title loan even if there is a balance remaining. There cannot be any other liens on the vehicle’s title to complete the process.
The Car Title Loan Process
Interested parties who do qualify can apply for a car title loan by filling out an application. Title loan companies like Embassy Loans of Florida have offices around the state but also allow prospective borrowers to fill out applications online. The application is the first part of the process.
Once the application has been completed and reviewed, applicants are asked for a variety of documentation. They must prove their identity and where they live as well as present the title to the vehicle. Lenders will verify everything before moving forward and assessing the vehicle.
The car, truck, or SUV will be appraised by the lender. Most title loan companies will use current blue book values to determine how much a vehicle is worth. In most cases, lenders will only allow 30 to 50 percent of the assessed value to be borrowed. If it is determined that a vehicle is worth $20,000, a borrower will only be able to borrow $10,000 maximum. If the borrower defaults on the loan, it is much easier for the lender to recover its losses.
The Benefits Of A Car Title Loan
To obtain a car title loan, borrowers need to own a vehicle and possess the title. Typically, the vehicle should be 15 years old or newer and in good condition. That’s it. Unlike traditional loans, a car title loan does not require the lender to research the credit history of a borrower. Lenders may check credit history, but it is not the primary factor that determines whether or not a car title loan is approved. Car title loans are secured by a vehicle, making credit a non-factor.
Most car title loans, like those at Embassy Loans, can be processed very quickly. At Embassy Loans, the typical auto title loan is completed, and the borrower has access to his or her money within 48 hours. Both the speed and ease of obtaining a car title loan are why these types of loans are becoming more popular.