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Using an Auto Title Loan Responsibly

Get-a-LoanIn the past few years, the car title loan has become a more popular form of borrowing among those looking for extra funds for a variety of reasons. A car title loan is one that is secured by the title to a vehicle that a borrower owns. It is somewhat different than more conventional loans offered by banks and other financial institutions. There are a number of differences that borrowers should be aware of if they are to use a car title loan responsibly.

 

Acquiring an Auto Title Loan

 

In order to obtain a car title loan, a borrower must possess a vehicle and its title and that title must be free of any liens. That means that the car or truck must be completely paid off. If this is the case, the borrower will fill out an application to begin the process. Embassy Loans, a leading consumer finance company in Florida, will verify a person’s identity, residency, and check to make sure the title and the vehicle match. Once complete, the borrower signs the loan agreement and receives the funds. Car title loans are processed within an hour and, oftentimes, much faster.

 

Understand The Terms Of The Loan

 

Before signing the title loan agreement, make sure you understand the terms of the loan, including repayment. You should be aware of the interest rate, which is normally higher than that of a conventional loan. Repayment terms can vary. You should also make sure that there is no prepayment penalty should you pay the loan off early. Paying the loan off early is in your best interest so that you save on interest payments.

 

Have A Plan To Repay The Loan

 

You should have a plan to repay the loan before you apply. There are title loan companies, like Embassy Loans, that may not require any proof of an income source or an employment verification. If you do not have a steady income source, be sure you have a plan to pay off the loan. Otherwise, the lender is going to take possession of your vehicle when you fail to pay.

 

Consider Other Options First

 

Before deciding to take out a car title loan, think about alternative sources of funds. You may want to consider a traditional loan with a lower interest rate, if you think you can qualify. Take a look at a credit card cash advance, borrowing from friends or family, or even taking items to a pawn shop. Some of those options may work out better for your situation.

 

 



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.