(833) 839-2274  157 N State Road 7, Plantation, FL 33317

BlogBlogThe Differences Between Personal, Payday, and Title Loans

The Differences Between Personal, Payday, and Title Loans

3 choicesFor those in need of help with their financial situations, there are several loan options available including personal loans, payday loans, and title loans. While many people may think that all loans are the same, there are some distinct differences between these three types. Let’s take a look.

 

Personal Loans

 

Personal loans, or unsecured loans, are those made by a financial institution or individual to a borrower with interest rates that range usually between 5 and 30 percent with terms ranging from 12 to 60 months. The interest rate and terms of the loan are dependent upon a borrower’s background, including credit history, work history, and amount of assets. The lender will ask for documentation from the borrower that includes a credit report, bank statements, pay stubs from a job, and more. The loan goes through an underwriting process where the lender will examine all of this information and determine whether or not the loan gets approved. If approved, the borrower will receive his or her money and begin repaying the loan in monthly installments.

 

Payday Loans

 

Payday loans are a short term loan where a borrower writes a personal check to the lender for the amount they wish to borrow plus the loan fees. To borrow $400, for example, a borrower may have to write a check for $450. The borrower will receive the $400 plus the terms of the loan. The loan usually needs to be repaid within a week or two. The borrower’s next paycheck acts as the collateral for the loan. To take out a payday, a borrower needs to prove that they have a job. There are no lengthy credit checks and, typically, a payday loan is completed within an hour or two.

 

Auto Title Loans

 

Companies like Florida’s Embassy Loans provide borrowers the ability to use their vehicle as collateral for a loan. Borrowers turn over the title to their car or truck in return for a short-term loan. Borrowers need to prove their identity and residency and must have a clear title. There are no credit checks since the vehicle is acting as collateral. Lenders must make sure that the title matches the vehicle and they will assess the value of the car or truck to finalize the loan agreement. The entire process usually takes between 24 and 48 hours from beginning to end. An auto title loan is fairly easy to obtain and a great way to get someone out of a short-term financial bind.



Embassy Loans is a leading provider of auto title loans since 2005

Get In Touch

Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

© 2024 · Embassy Loans · Site built by DMA

Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.