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Should I Use a Credit Card Cash Advance?

understanding-debtThere are plenty of times when you end up in a situation where using a credit card is not possible. It may be as simple as your local farmer’s market, or it could be an emergency involving your broken down car… in another state. When you need cash and need it fast, a few sources come to mind. One is a cash advance taken from your credit card company. Is it an option you should use?

What Is a Cash Advance?

A cash advance from your credit card company is a short-term loan that you can take out against your credit card. Your credit card issuer will allow to take a certain amount of cash, usually a few hundred dollars, in exchange for a fee. The fee, or fees, can be hefty. Most credit card companies will charge a percentage of your loan amount as a fee on top of the interest that you will pay. If you take a $400 cash advance and your fee is four percent, you will pay $16 just to get your money. Your interest rates are a whole separate issue.

Interest Rates on a Cash Advance

There are a few credit card companies who charge a flat rate for a cash advance and even fewer who do not charge at all. Regardless, you will still pay interest on your short-term loan. The interest rates on cash advances are normally higher than the regular interest rates on your card, and there is no grace period. Essentially, you will need to pay back that cash advance as quickly as possible because the interest starts to build the moment you receive your money.

Is There a Better Option?

Absolutely! If you own a vehicle, have the title, and have some equity, you can take out a car title loan. Embassy Loans, one of the Florida’s leading consumer finance companies, has helped thousands of customers use their vehicles to access cash when in a bind. A car title loan is a secured loan that is processed quickly and can be completed from 20 minutes to an hour.

How Do Car Title Loans Work?

Title loan companies like Embassy Loans would prefer that your car be less than 15 years old and completely paid. If it is not paid off entirely, you may still be able to qualify. Your first step is to fill out an application either in person or online. You will be asked for a few forms of documentation such as your driver’s license and, of course, the title to the vehicle.

Embassy Loans will assess the value of your vehicle and then write up the loan agreement. Since the loan is not based on your credit history, there is no need to check your credit report. The car title loan is processed quickly, and you could have access to much-needed cash in a day or two.



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.