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Using Your Vehicle As Collateral For A Loan

Car CollatoralWith all of the different types of loans available, one that is gaining in popularity is the car title loan. When conventional borrowing fails, car owners can use their vehicle as collateral to obtain a loan. Here’s how.

Qualify For An Auto Title Loan

If you own a vehicle that is completely paid for (or almost paid for in some cases), you can obtain a car title loan. The title must be clear meaning there cannot be any liens against it. If so, you qualify and can fill out an application to start the process.

Necessary Documentation

To obtain an auto title loan, you will need to prove your identity and your residency. That is easily done by bringing a driver’s license and a utility bill that shows where you live. You must also bring the title to the vehicle. Lenders, like Embassy Loans of Florida, will check to make sure that the title matches the vehicle.

Appraisal And Payout

The vehicle being used as collateral must be assessed for its value. This is important since it will determine how much can be borrowed. Once this step is complete, the loan terms and documents can be finalized and a borrower can receive his or her money.

Benefits

The lender will keep the title to the vehicle. However, you get to keep the vehicle. Should you fail to repay the loan, the lender can take possession of the vehicle since it holds the title. The lender can then sell your car or truck to recover the money that it lost.

You do not have to have a good credit history in order to obtain a car title loan. Since a vehicle is being used as collateral, lenders do not care so much about credit. They care more about the vehicle and a borrower’s ability to repay the loan.

Car title loans are easy to obtain, as well as fast. A typical auto title loan can be processed, from beginning to end, within 30 minutes. Embassy Loans, on many occasions, will disburse funds to a borrower on the same day in which an application was started.

For borrowers that need money in a hurry, car title loans are the perfect answer. They are also great for those who do not have a good credit history. Conventional loans from a bank or credit union depend heavily upon a borrower’s credit history and how he has paid his bills in the past.



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.