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Your Credit Score and a Car Title Loan

credit_score-300x200If you know anything about borrowing money, you know that going to the bank to get a loan can be a frustrating process. Whether or not a financial institution will actually lend you money has a lot to do with your credit history and your credit score. Scores over 720 usually reflect someone with creditworthiness and represents a safer option for lenders. Those with scores under 620 generally represent the highest risk for lenders, and in today’s tightened credit market, conventional loans are nearly impossible to obtain. There are other options, though.

 

What is a Car Title Loan?

 

If you own a vehicle that is paid off and is less than 15 years old, you have a great chance of qualifying for a car title loan. The vehicle is used as collateral and a lender, like Embassy Loans of Florida, agrees to lend a sum of money to an individual in return for a fee. If the loan is not repaid, Embassy Loans can take possession of the vehicle and sell it. These loans are typically for smaller dollar amounts in the range of $1,500 to $5,000, but can be for more. Depending upon the lender, the vehicle may not have to be paid off completely either.

 

The Process

 

Obtaining a car title loan is rather easy. Interested borrowers fill out an application in person or online. When the application is finished and submitted, the lender will require certain documentation. Lenders will need to see identification, proof of residency, and the title to the vehicle. The vehicle identification number (VIN) must match the VIN on the title. Once everything has been verified, the lender will assess the vehicle for its value and the loan is finalized. At Embassy Loans, the typical title loan is processed from beginning to end in an hour.

 

Your Credit Score

 

For the most part, your credit score is irrelevant. Since a car title loan is a type of secured loan, there is really no need to check a person’s credit report. Some lenders will, but credit history is not the primary determinant of loan approval. Since many lenders do not need to check credit, a lot of paperwork is eliminated and car title loans are processed much faster than others.

 

When you pay off a car title loan, your credit score is impacted positively. If you made all of the payments on time and paid off the balance, you will have met your debt requirement. Your credit score will be impacted positively, which will allow to borrow using conventional means in the future.

 

 

 

 



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.