A car title loan is a short-term, secured loan that has become very popular in recent years as traditional lenders have made borrowing more difficult for the average household. An auto title loan is easy to obtain and are a great source of cash for those needing it quickly. Companies such as Florida’s Embassy Loans evaluate the value of the vehicle and a few other factors and make a quick decision as to whether to approve the loan. Many car title loans are completed within an hour as opposed to several weeks for traditional loans. Processing time is, of course, one reason why car title loans are so popular. Here are a few other reasons more people are seeking vehicle title loans.
Unlike traditional loans, a car title loan is a secure loan. The vehicle is offered as collateral for the loan. If the borrower doesn’t repay the loan, the lender can take the vehicle and sell it to recover any losses. Since the loan is secure, there is no need for some of the background and credit checks associated with traditional types of loans. Because of this, car title loans take a lot less time to process with most finished within two days.
Perfect For Emergency Situations
When an emergency occurs and cash is needed, traditional loans – even if you are able to obtain them – just take too long. Banks and credit unions need time to check a borrower’s credit history, employment history, and more before deciding on whether to loan money or not. If you have a medical emergency or possibly a plumbing problem in your home, you may need the cash almost immediately. Because car title loans are processed so quickly, they are perfect for these types of emergency situations.
No Credit Checks
For people who have poor credit histories, car title loans are great. Since a vehicle is offered as collateral, there is no need for a credit check. Oftentimes, it is poor credit that prevents an individual from borrowing from a conventional lender. The auto title loan is not based upon credit like traditional loans. As a result, title loans are great for those with bad credit and those who need money fast.
Car title loans are a great source of emergency cash. Eligible borrowers are those who possess a car or truck that is completely paid off. The process is easy and many at Embassy Loans are completed the same day that the application is started.