If you have a financial situation and need to get your hands on some cash and do so quickly, a car title loan is one method of making it happen. If you have credit troubles that prevent you from obtaining a traditional loan from a bank or credit union, a title loan may make the most sense.

How They Work

Title loan companies will lend to those who own their vehicles outright. With no liens on the title, the title loan company will allow a person to use the vehicle as collateral. First, an individual must fill out an application. After it is submitted, applicants must verify their identity and residency. They will also present the title to the vehicle. Once everything is verified, the title loan company, like Embassy Loans of Florida, will then assess the vehicle for value. Most title loan companies will offer a fraction of what the vehicle is truly worth. Regardless, once the loan amount is set, the final loan documents can be drawn up.

Advantages of Car Title Loans

The big advantage of doing a car title loan is the speed in which it is processed. Since there is no need for background checks and credit history reports, the process for completing a car title loan is fast. While a conventional loan may take several weeks to process, the typical car title loan can be completed in as little as 1 or 2 days. Many car title loans at Embassy Loans are processed in the same day that they are started.

Other Options

If a car title loan does not work or maybe you are not completely comfortable with them yet, there are alternatives available to collect some much needed cash. Credit cards are always a solid choice. You may want to check your credit limit to see if there is enough for you to borrow. Check the interest rate on your credit cards. Some are outrageous. If that is the case, look for an alternatives sources of cash.

Payment extensions might be available to help you in a time of need. Contact your vendors and explain your situation. If you happen to be granted an extension, get it in writing with the specific terms. This way, you can compare your offers and make a solid, educated decision.

Another idea is to find out if your employer has an emergency loan program. Oftentimes, employers will have loan programs available to employees for rough financial situations. Contact someone in your business’s human resources to see if the service is available.