A car title loan is a short-term loan that involves using a vehicle as collateral. If you own a vehicle with a clear title, you can qualify. In today’s shaky financial times, many people are battling low credit scores and poor credit history. An auto title loan is a great alternative to conventional loans offered by banks and other financial institutions.
Car title loans are processed very quickly, unlike traditional loans. Going to the bank for a loan requires a good credit history. Even with good credit, it often takes 30 to 45 days until a borrower receives his or her money. In an emergency situation, you need cash quickly. A vehicle title loan can provide those funds often within hours of applying.
A car title loan from Embassy Loans of Florida, for example, can take as little as an hour to process and get an applicant his or her money. A prospective borrower must first fill out an application, which takes just a few minutes. After the application is complete, Embassy Loans will verify the applicant’s identity and residency.
The title to the vehicle being used as collateral is checked to ensure it matches the vehicle. The vehicle is inspected and assessed for its value. Once a value has been determined, the loan can be finalized. The final paperwork is drawn up, the documents are signed, and the borrower can receive those much-needed funds.
Most often, this entire process is completed the same day in which an application is started. Borrowers in need of quick cash get it. There is no waiting while a lender goes through mounds of paperwork to determine whether or not they are going to issue you a loan.
The speed of a car title loan makes it a great option when you find yourself faced with financial difficulty. Your credit history is not a factor as an auto title loan is secured by a vehicle. Examining a person’s credit history and other background is a big reason why traditional loans take so long. None of that is necessary when a borrower uses a car or truck as collateral.