You might have heard of car title loans but really do not know exactly what they are. Are they a safe financial option in a time of emergency? Are they the right type of loan for you? A title loan might be the answer depending upon your situation. It is imperative, though, that you understand how this type of loan works.
A car title loan is one that uses a vehicle as collateral. The car or truck must be paid in full, or very close to completely paid, in order to be eligible for a vehicle title loan. A lien will be placed upon the title, which the borrower surrenders to the lender. Embassy Loans of Florida, for example, holds the title to the vehicle as collateral for the loan. When the loan is paid off, the lender returns the title to the borrower. Lenders like Embassy Loans have some requirements prior to completing the loan process.
At Embassy Loans, one of Florida’s leading providers of auto title loans, borrowers must fill out an application to begin the process. Once complete, borrowers must present a few documents to verify who they are and where they live. Applicants will be asked for a form of photo identification and something such as a utility bill which will prove their residency. The borrower must provide a clear title to the vehicle being used as collateral.
When the borrower’s identity and residency have been verified, the next step is to inspect the vehicle. Embassy Loans has 21 different inspection stations located around the state where borrowers can go to have their cars and trucks appraised. The vehicle will be matched to the title first and then an estimate of the car’s value will be determined. This is important since the vehicle’s value will determine the maximum amount that can be borrowed.
Once the value of the car or truck is determined, the loan process can be completed. The terms of the loan will be drawn up and the loan finalized. All that is left is for the borrower to pick up his or her money. The entire process is normally completed within an hour and most title loans are completed the same day they are started.
There are no credit checks or background checks necessary. This helps to speed up the process. If you have a car or truck with a clear title and are in need of quick cash, a title loan may be the answer to your financial woes.