(833) 839-2274  157 N State Road 7, Plantation, FL 33317

BlogBlogCan Car Title Loans Destroy Your Finances?

Can Car Title Loans Destroy Your Finances?

dreamstimeextrasmall_28326900The short answer is yes – and no. Car title loans can destroy someone’s financial future just as a conventional loan can. Car title loans can also help promote a healthy financial picture for those who use them wisely. Here’s a look at how a car title loan can promote or destroy someone’s financial standing.

 

The Basics Of A Car Title Loan

 

Car owners who have paid off their loan balance or who have almost paid it off can borrow against the car’s title. The vehicle secures the loan, meaning that if the borrower defaults on the loan, then the lender can take possession of the vehicle. Many lenders do not require the vehicle to be completely paid off and most car title loans are in the range of $1,000 to $5,000.

 

Loans can be obtained from a variety of title loan companies such as Embassy Loans in Florida. The process to obtain the loan is easy, and most loans are completed in an hour. Since a vehicle serves as collateral, there is no need for credit background checks. These, and other background checks and verifications, typically hold up the processing of conventional loans.

 

Car Title Loans – The Bad

 

Whether it is a car title loan, a car loan, or a mortgage payment, if you choose not to repay it you are going to have problems. With a car title loan, when the borrower decides not to repay, the lender can take possession of the vehicle and then sell it to recover some of the losses. As a borrower, there is the possibility that you can lose your car. Defaulting on the loan will also do more damage to your credit history. This is true for any loan.

 

Car Title Loans – The Good

 

Making your car title loan payments on time positively reflects on your credit report. Paying it off on time, or even ahead of schedule, is also beneficial for a borrower’s credit. A solid payment history makes up the biggest portion of a person’s credit score. By not missing payments and paying off your debt, you impact your credit history in a positive fashion. The same is true for a car loan, a mortgage, or even a credit card.

 

Like any debt payment if handled properly, taking out a car title loan can be a benefit. You get money when you need it and repaying the loan improves your credit history and your overall financial picture. Handled incorrectly, a car title loan, like any other loan, can lead to financial catastrophe.



Embassy Loans is a leading provider of auto title loans since 2005

Get In Touch

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.

© 2024 · Embassy Loans · Site built by DMA

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.