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Not All Secured Loans Are The Same

Not all the sameA secured loan is one in which the borrower offers up an asset as collateral for the loan. The asset may be a car or a house, for example, which then becomes a secured debt owed to the creditor. Not all secured loans are alike, however. One of the more popular secured loans is one in which a home is used as collateral.

Many people have used a home equity loan or second mortgage as a means for making improvements to a home, paying for their kids’ college education, or even paying for unexpected emergencies. Whatever the reasoning, these types of loans are normally processed by a financial institution such as a bank or credit union or through a private mortgage broker.

A home equity loan is, in most cases, a second mortgage on a home. Most homeowners borrowed to pay for the home in the first place. The second mortgage is much like the first. It will take several weeks to process because it is based largely on credit history, income, and current levels of debt. The financial institution will take a great deal of time to make sure that the borrower has the necessary means to pay back the loan. Like any secured loan, if the borrower fails to repay, the lender can take possession of the property. The lender would then attempt to auction the home in an attempt to recover its losses.

Another type of secured loan is a car title loan. Auto title loans are secured by a vehicle. The owner of the vehicle must own the vehicle outright and have a clear title. In some cases, cars that are almost completely paid for can be used as collateral.

A car title loan is processed much faster than a home equity loan. Title loan companies, like Embassy Car Title Loans of Florida, do not have to take the time to do lengthy credit checks or examine other debts held by a borrower. As a result, the processing time for a vehicle title loan is much faster than that of a second mortgage. In most cases, a car title loan is processed and the funds are transferred to the borrower within minutes of completing an application.

The term of the car title loan is much shorter than the average second mortgage. Just like a home equity loan, when a person defaults on the loan the title loan company can take possession of the vehicle. For those needing access to emergency funds very quickly, the car title loan is a great option.



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

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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.

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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.