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BlogBlogHow To Know If A Car Title Loan Is Best For You

How To Know If A Car Title Loan Is Best For You

Business-OwnerThere are a number of different types of loans available. Which loan will work best for you? The answer will depend largely upon your financial situation and your credit history. If you have a poor credit history and credit score, your choices are limited. Two loans that can help you access cash in the case of emergency are payday loans and car title loans.

 

Paydays Loans

 

These loans are unsecured, meaning there is no collateral. Basically, a borrower signs a contract to repay the loan. How much a person can borrow is dependent upon how much the person earns in a month. As long as the borrower has not defaulted on a payday loan in the past, getting approved is easy. Borrowers must understand that the normal terms of a payday loan require it to be paid off in roughly two weeks. The payoff is based around the borrower’s pay cycle. Borrowers visiting a storefront lender can expect approval and receive their money the same day. Online payday lenders will typically deposit funds into a borrower’s bank account the next business day.

 

Car Title Loans

 

A car title loan is different from a payday loan because it is a form of secured loan. A vehicle, actually the vehicle’s title, secures the loan. If a borrower fails to repay the loan, the lender, as a lien holder listed on the title, has the right to secure possession of the vehicle. An individual who owns a car, preferably all paid for, can use it to borrow. Title loan companies like Embassy Loans of Florida typically approve title loans very quickly. At Embassy Loans, prospective borrowers fill out an application, present a few forms of documentation including the title, and the loan can be approved usually within an hour. There are no credit checks since the loan is not based on a person’s credit history. The loan is still risky, but the lender can repossess the car or truck and then sell it to recover its losses if the borrower does not repay the loan. In most cases, a title loan company will only allow a person to borrow 30 to 50 percent of the vehicle’s actual value. Should the borrower default, this makes it much easier to make up any losses.

 

Which Loan Is Best

 

In choosing between the two types of loans, a smaller loan amount of less than $1,000 is typical for a payday loan. Car title loans usually range between $1,000 and $5,000. You must own a car or truck in order to apply for a car title loan just like you must have a job in order to be approved for a payday loan.



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.