Why Are Car Title Loans So Popular?
While not as well-known as traditional bank loans, car title loans are becoming more and more popular for people who have a need for access to quick cash. A car title loan from a lender like Florida’s own Embassy Loans can provide a borrower with the money he or she needs within an hour. Here are the four reasons why these loans are so popular.
Quick Processing
As stated, a borrower can have the money he needs within a day or two. Traditional bank loans take weeks, sometimes months, to process. Banks will thoroughly examine an applicant’s credit history, employment history, and more. A title loan lender like Embassy Loans will verify an applicant’s identity and residency and will examine the title to the vehicle. Once they assess the value of the vehicle, the final loan documents are drawn up. This process can be completed within a few hours.
In Case Of Emergency
Faced with a financial emergency, many people find themselves without the funds to handle the situation. It could be a medical emergency or an unexpected plumbing issue in the home that needs fixed fast. Whatever the case may be, a car title loan can give someone the funds necessary to take care of their emergency and do so quickly.
No Credit Check
For many people, trying to obtain a conventional loan is difficult because of their credit history. Without a solid credit score and a history of paying bills on time, many banks and credit unions will turn down a lot of potential borrowers. With a car title loan, a vehicle, instead of a signature, is being used as collateral so there is no need for a credit check.
Help During Difficult Economic Times
When the housing bubble burst in 2008 propelling the nation into a long period of recession, many people found themselves unemployed. With a national unemployment rate hovering around 10 percent, people found bridging the gap between jobs difficult. One of the ways that many people were able to stay in the homes was through the use of a title loan. The loan helped them cover the costs associated with mortgages, rents, and other necessary bills while finding new employment.
Car title loans are available to those who possess a clear title to a vehicle that has been paid for in its entirety. In some cases, a title loan company will offer loans to those whose vehicles are almost paid off. Title loans are a quick and easy way to get access to much needed cash.
