Important Facts You Should Know About Car Title Loans
A car title loan is a short-term, secured loan against a vehicle owned by the borrower. The car is used as collateral in exchange for a certain amount of cash. For many borrowers, auto title loans are the fastest and easiest way to get cash quickly. At Embassy Loans of Florida, most car title loans are processed within an hour, giving borrowers access to funds fast. Still, many people remain unsure about how these loans work. Here are the key facts you should know.
You Only Need to Own a Vehicle to Qualify
To qualify for a car title loan, you must own a vehicle and possess its title. That’s essentially it. Unlike traditional bank loans, your credit history or employment status plays a smaller role in approval. If you own a vehicle in good condition and hold the title, you can qualify. Most lenders prefer newer vehicles, typically no older than 10 to 15 years.
Car Title Loans Are Short-Term
Car title loans are designed to be repaid over a short period, usually from one month to several months. If the loan isn’t paid within the term, many lenders allow borrowers to roll it over or renew it for an additional fee. While this option exists, it’s always best to pay off the loan as quickly as possible to avoid extra charges.
You Can Still Drive Your Car
When you take out a car title loan, the lender holds the title, making them the legal owner during the loan term. However, you still keep possession of your car and can continue driving it. If the borrower defaults, the lender can take possession of the vehicle and sell it to recover losses.
Loan Amounts Depend on Vehicle Value
The amount you can borrow is based on your vehicle’s value, typically determined using current blue book pricing. Most lenders offer between 30% and 50% of the vehicle’s value. This ensures they can recover their funds if the borrower defaults.
Car title loans provide a fast and accessible way to get much-needed cash, especially for those with poor credit or limited financial options. Before taking out a loan, be sure you understand all the terms and responsibilities.
Need Cash Fast? Get Started Today
If you’re ready to explore your options, Embassy Loans is here to help. You can apply online, reach out through our contact page, or call (833) 839-2274 for immediate assistance.
