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BlogBlogA Car Title Loan Vs. A Bank Loan

A Car Title Loan Vs. A Bank Loan

vsIf you have found yourself in a situation where you have needed to borrow money, you may have thought first of a traditional bank loan. While thousands of bank loans are processed every day, they are not the only type of loan available to borrowers. There are pawn loans, payday loans, personal loans from friends and family, and more. One of the lesser known options for borrowers is the car title loan, which provides some advantages, especially for those needing short-term access to cash.

 

Car Title Loans – The Process

 

Applying for a car title loan is easy. If you own a vehicle that is paid off or near being paid off in full, you may qualify. You start the process by filling out an application. At Embassy Loans of Florida, prospective borrowers can fill out the application online or in person. Once complete, applicants must supply documentation that proves their identity and residency. They will also have to provide the title to the vehicle.

 

When the person’s identity and residency has been verified, title loan companies begin to assess the value of the vehicle that is being used as collateral for the loan. Most lenders will use common blue book values. With a value for the vehicle established, the loan terms and payment plan are drawn up.

 

Advantages Over Bank Loans

 

One of the big advantages that title loans have over traditional bank loans is speed. The entire processing of a title loan at Embassy Loans normally takes an hour. Often, borrowers receive their money on the same day they filled out the application.

 

One of the things that speeds up car title loan processing is the fact that a credit history is not necessarily needed. A car title loan is based upon the value of the vehicle, not on the borrower’s credit. Some lenders may run a credit report, but it is not the basis for the approval of the loan. Bank loans are based on a variety of factors, including a borrower’s credit history. Banks must take a great deal of time scrutinizing a credit report. This is why bank loans typically take several weeks to process.

 

Because of their easy processing and speed, car title loans are a great option for those who need to access money quickly. Auto title loans are also an option for those who struggle with bad credit.

 



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.