Your Credit Score and a Car Title Loan
If you know anything about borrowing money, you know that going to the bank to get a loan can be a frustrating process. Whether or not a financial institution will lend you money depends largely on your credit history and credit score.
Scores over 720 usually reflect strong creditworthiness and represent a safer option for lenders. Those with scores under 620 generally represent the highest risk, and in today’s tightened credit market, conventional loans are nearly impossible to obtain. Thankfully, there are other options — one of them being a car title loan.
What Is a Car Title Loan?
If you own a vehicle that’s paid off and is less than 15 years old, you have a great chance of qualifying for a car title loan. The vehicle is used as collateral, and a lender such as Embassy Loans of Florida agrees to lend a sum of money in return for a fee.
If the loan is not repaid, the lender can take possession of the vehicle and sell it. These loans are typically for smaller amounts — often between $1,500 and $5,000, though larger loans are possible. Depending on the lender, your vehicle may not even need to be fully paid off.
The Car Title Loan Process
Obtaining a car title loan is simple and fast. Interested borrowers can apply in person or online. Once the application is submitted, the lender will require certain documents — identification, proof of residency, and the vehicle title.
The vehicle identification number (VIN) must match the VIN on the title. Once verified, the lender assesses the vehicle’s value and finalizes the loan.
At Embassy Loans, the typical title loan process takes about one hour from start to finish.
Your Credit Score and Loan Approval
For the most part, your credit score is not a major factor in getting a car title loan. Since it’s a secured loan, the vehicle itself serves as collateral. Some lenders may still check credit, but it’s not the main approval factor.
Because credit checks are often unnecessary, less paperwork is involved — which means faster processing and easier qualification, even for those with poor or limited credit history.
How a Car Title Loan Can Help Your Credit
When you pay off a car title loan responsibly, your credit score can be impacted positively. Making payments on time and paying the balance in full demonstrates reliability to future lenders.
This positive payment history may help you qualify for conventional loans later on and improve your overall financial profile.
Need cash fast but worried about your credit score? Apply online or contact 833-839-2274 to learn more about quick and secure car title loans from Embassy Loans.
