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Can a Car Title Loan Ruin Your Finances?

After-BankruptcyThe answer to that question is up to each individual who takes out a car title loan. As with any form of borrowing, a borrower who does not have set financial goals or a plan to repay the loan can end up with even more problems. Can a car title loan ruin your finances? Only if you let it.

 

How to Obtain a Car Title Loan

 

Car title loans are relatively easy to obtain when compared to other more traditional types of borrowing. If you own a vehicle that is relatively new (under 15 years old) that is in good shape, you can qualify. You must possess the title to the vehicle, and it is preferable that the car or truck is paid off entirely. If you have a lot of equity in your vehicle, you can still qualify for a car title loan even if you do have a loan balance remaining. Title loan companies, like Embassy Loans, require a borrower to apply first and then present verifying documentation. Embassy Loans allows applicants to fill out the application online. The application takes just a few minutes to complete.

 

What about My Credit History?

 

Unlike traditional bank loans, a car title loan is secured by the title to the vehicle. The loan is not based upon your credit history. Most title loan companies do not even check a borrower’s credit report. The downfall for borrowers is that if they cannot repay the loan, they stand to lose their vehicle. When a borrower defaults, the lender can take possession of the vehicle and then sell it to recover any losses.

 

Advantages of a Car Title Loan

 

For those with poor credit, a car title loan is a more likely option when it comes to borrowing. When in an emergency situation, car title loans are great because the processing time is quick. Since there is much less paperwork involved than with traditional loans, car title loans can be completed within a day or two. Waiting for personal loans from a bank can take up to a month or even longer. At Embassy Loans, borrowers who get all of their paperwork in quickly can have access to their money within an hour.

 

Have a Plan to Repay the Loan

 

A car title loan should be used wisely. A borrower should have a plan to repay the loan and do so as quickly as possible. Most lenders do not have prepayment penalties meaning borrowers can apply more than just the minimum payment toward paying off the loan. Doing so will help to pay the loan off early and save a borrower a lot in interest payments.

 

 

 



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.