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BlogBlog5 Things To Consider When Thinking About A Car Title Loan

5 Things To Consider When Thinking About A Car Title Loan

Choosing-A-Title-Loan-CompanyIn times of an urgent financial need, one option that borrowers have is the car title loan. While not as well-known as the traditional bank loan, a car title loan is a fast and effective method for accessing much needed cash. Before deciding on taking out a car title loan, consider each of the following very carefully.

 

  • How much money do you need?

Car title loans are great when you have a need for several hundred to a few thousand dollars. Most title loan companies will only allow an applicant to borrow 50 percent of the vehicle’s value. If you need $20,000 and your car is only worth $15,000, an auto title loan is not going to work. Likewise, if you only need $500 for a plumbing repair, a title loan will surely work but you may want to explore other options first.

 

  • Is your title clean?

A clean title is one that is free of any liens. That means the vehicle is not being financed or another lien has not been placed upon the title. If so, then the vehicle is proper collateral. If the borrower defaults on the title loan, the lender can take possession of the vehicle and sell it to recover its losses. If there is an existing lien on the title, technically that lien holder is the owner of the vehicle.

 

  • What paperwork is necessary?

Obviously, a potential borrower must have the title to the vehicle. Title loan companies like Embassy Loans of Florida, will verify that the vehicle identification number (VIN) matches that shown on the title. Borrower’s will need documentation to prove their identity and residency and, in some cases, must have documentation related to income.

 

  • Research various title loan companies.

There are a number of car title loan companies in the market. Do your research before choosing one. Search for testimonials and reviews of the companies that you are considering. Embassy Loans has been one of the Florida’s leading consumer finance companies for many years and has a reputation that speaks for itself. Choose a title loan company wisely.

 

  • Pay close attention to the payment schedule.

When final loan documents are signed, the terms of the repayment schedule are included. Borrowers must understand when payments are due and how much of the payment goes toward the principal and how much goes to interest. Borrowers can use this information to pay their loan off and pay it off quicker than anticipated. Not paying attention to the payment schedule can result in a borrower losing their car or truck.

 



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.