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BlogBlogThe Fundamentals of a Car Title Loan

The Fundamentals of a Car Title Loan

BasicsA car title loan is a form of a secured loan where a vehicle’s title is used as collateral in exchange for a loan. Vehicle owners who possess a title free and clear of any liens are more likely to be granted a car title loan. In some cases, title loan companies will loan to a vehicle owner who still has a balance on a loan. It also helps if the vehicle is less than 10 years old and in good shape. Title loan companies, just like banks and credit unions, assess the risk involved with a loan before approving it. For example, a title loan is somewhat less risky that a personal loan that is granted based an individual’s credit history and a signature.

 

If you own a car that is 10 years old or less and it is paid off, you are a great candidate for a car title loan. You can go to a title loan company such as Embassy Loans and apply. Most companies, like Embassy Loans, offer their services online. You fill out an application in just a few minutes and then you are asked for some documentation. This usually includes your driver’s license, something that proves where you live like a utility bill, and the title to the vehicle.

 

Once your information has been verified, the lender will have to assess your vehicle and determine its value. Most lenders use some form of blue book value. You will not be able to borrow against the full value assigned to the vehicle. Most title loan companies will only allow you to borrow 30 to 50 percent of the vehicle’s value. Lenders do so because it is easier to recover any losses if the borrower does default on the loan.

 

Unlike traditional loans from a bank, the loan is not based upon the credit score and credit history of the borrower. Many title loan companies will not even run a person’s credit report as a requirement for the loan. The loan is secured by the vehicle and if the borrower does not repay it, the lender can take possession of it and then sell it to recoup any losses.

 

Most title loans are processed very quickly. At Embassy Loans, the typical auto title loan is completed and the borrower receives his or her money within an hour. It is one of the big advantages of taking out a car title loan, which offer borrowers a quick and easy source of emergency cash.

 



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.