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BlogBlogA Car Title Loan Versus A Payday Loan

A Car Title Loan Versus A Payday Loan

vsFor those who need to access funds quickly, the payday loan and the car title loan are two great options. Whether it be for an emergency or to access money to help pay for college expenses, home renovations, or even a family vacation, these two loan options are fast and easy ways to get your hands on some much-needed cash.

A payday loan is, as the name suggests, a short-term loan that is provided in return for a post-dated check. That post-dated check is made payable on the date of the borrower’s next payday. The borrower then has the option to pay the loan back in full. Payday loans are normally for smaller amounts – the average is around $500 – and are most often used in an emergency situation. When the rent needs paid and the funds are not available until the next paycheck, a payday loan can help to save the day.

A car title loan is similar to a payday loan in that it is a short-term loan that can be used to access emergency cash. Auto title loans are secured by a vehicle. A borrower must own a vehicle and owe nothing on it. The title must have no liens on it as well. Borrowers can apply for a car title loan through a title loan company, such as Florida’s Embassy Loans. Applicants can apply in person in one of the company’s many branch offices or they can apply online. Filling out an application takes just a few minutes.

The processing of the auto title loan is similar to that of a payday loan. Most car title loans are processed in an hour. Many applicants receive their money on the same day that they filled out their application. A borrower must present the title to the vehicle as well as proof of identification and residency. The lender will verify the borrower’s identity and make sure that the title matches the vehicle.

The vehicle is assessed for value and then the final terms of the loan are drawn up. Typically, a person taking out a car title loan can access more money than someone using a payday loan. The amount of the loan depends upon the value of the vehicle.

Processing the loan is quick because there is no need for any credit checks or background checks that are common with traditional loans. For larger loan amounts and quick processing, a 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.