If you need money quickly, one of the easiest ways to access it is through the use of a car title loan. There are certain criteria that you must meet, but a car title loan can get you the money you need within a day or two. How much you can borrow largely depends upon your vehicle and upon the title loan company with which you choose to do business.

How It Works

A car title loan is one where a car owner offers the vehicle as collateral in exchange for a loan. In most cases, the vehicle must be paid in full but there are times when a title loan company may make exceptions. A prospective borrower will fill out an application – most title loan companies such as Embassy Loans of Florida allow applicants to fill one out online – to begin the process.

After the application is completed, a person’s identity and residency must be verified. Most individuals will submit a driver’s license and a utility bill showing their address as proof. The borrower must also have the original title to the vehicle and the VIN (vehicle identification number) on the title must match that of the car or truck. Once everything is verified, the vehicle is then assessed for value.

Vehicle Assessment

Title loan companies will appraise the vehicle either in person or by sending an agent to take photos and check the condition of the vehicle. The lenders will check Kelly Blue Book and NADA for fair market values and come up with what they believe the vehicle is worth. At that point, the lender will decide the maximum that can be borrowed. The number is usually about 50 to 75 percent of what the vehicle is actually worth. For example, a vehicle worth $20,000 will permit a borrower to get a car title loan for between $10,000 and $15,000.

Your Loan Amount

Just because a title loan company will lend you $15,000 does not mean that you have to borrow that amount. Keep in mind the amount you need for your emergency and be sure to have a plan ready to pay it back. The average amount of a car title loan across the nation is somewhere between $600 and $3,000. These short-term loans can help anyone through a rough financial patch. Title loan companies can also offer some unique methods of repayment too, but always have a plan in place to pay your title loan off as fast as possible.