Are you a subprime borrower? You are if you have a poor credit score, insufficient credit history, or some combination of the two. With a credit score of below 620, you will find that attempting to open new lines of credit or borrow money are nearly impossible. Credit card companies, department stores, and more will most likely not extend credit to those with low scores. Banks and credit unions, especially in these days of tighter credit restrictions, will only lend to those who are most creditworthy.

In attempting to borrow from a traditional lender, those with credit issues are a risk. Credit unions are cooperative financial institutions that are controlled by its membership. They will extend credit to members are reasonable rates, often lower than those at larger banks. The problem is that membership is limited and those with poor credit histories would have a hard time joining.

Obtaining an unsecured loan from a traditional bank is another possible avenue when in need of cash. Unsecured loans are based upon an individual’s ability to repay the loan. A very thorough background check, including the verification of credit history, will be performed. The requirements for approval are very stringent and a subprime borrower has little, if any, chance of being approved for a loan.

Car title loans, however, are a different breed of loan. The loan is secured using a vehicle. Potential borrowers must have a car with a clear title. The vehicle must be paid for, or almost entirely paid for, and have no other liens on it. A potential borrower needs to fill out an application and verify their identity. Those who utilize Embassy Loans in Florida, for example, will note that the application process is simple. It can be completed online or at one of their very convenient locations.

When the application is complete, borrowers will need to produce a clear title to the vehicle as well as some form of photo identification. The lender will need to inspect the vehicle to ensure that it matches the title as well as to appraise its value. With the title verified and an assessment of what the vehicle is worth, all that is left is for the loan process to be completed and the borrower to pick up his or her money. There are no credit checks, lengthy background checks or other time-consuming paperwork necessary – the perfect solution for a subprime borrower.