How to Qualify for a Car Title Loan
People borrow money all the time. Most traditional loans have a process to determine whether or not an individual qualifies to receive a loan. Traditional lenders, like banks and credit unions, will want to know why you are borrowing the money, what your credit history is like, and your past history of paying back loans. Qualifying for a conventional loan can be difficult.
A car title loan is not your traditional loan. In fact, many people are unaware that you can use a vehicle’s title as collateral for a loan. Qualifying for an auto title loan is also much different than qualifying for a traditional loan.
Title loan companies, such as Embassy Loans in Florida, issue loans every day and do not necessarily care how the borrower will use the money. A title loan company does not care so much about a person’s credit history either. Here’s why.
A person who owns a car or truck outright and has a clean title qualifies for a title loan. Embassy Loans, like most other title loan companies, will go through a process of verifying a person’s identity and residency. Some may also ask for proof of employment. If you can prove your identity and show where you live, you qualify for an auto title loan.
The title loan company does not need to do a credit check since the car or truck secures the loan. If a person defaults, the title loan company can take possession of the vehicle. Traditional loans are backed by nothing more than a signature and an agreement to repay the loan. A bank must go through an intricate process to try and recover its money should a borrower default.
Once an applicant provides the necessary documentation, the vehicle is appraised for its value. Lenders use a percentage of that value to determine the loan amount. The lender then finalizes the terms of the loan and the borrower signs the documents. Once signed, the borrower can receive his or her money.
The entire process of a car title loan, from filling out an application to receiving the money, will normally take an hour. Many are completed the same day on which the application was first submitted.
If you own a vehicle that is paid off and you possess a title free of any liens, you can qualify for an auto title loan. With a driver’s license to prove your identity and a utility bill to show where you live, you can walk into a title loan company and obtain a car title loan.
