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BlogBlogUnderstanding the Risks and Rewards of Car Title Loans

Understanding the Risks and Rewards of Car Title Loans

Title LoansIf  you need cash quickly and are prepared to repay them, car title loans are an easy way to access money in a hurry. Before applying for one, though, you should make sure you have a good understanding of the risks and rewards involved.

 

Advantages of Using Car Title Loans

  1. Have you ever tried to get a loan from a bank? Taking out a mortgage, for example, can take several weeks. Obtaining a car titleloan can take as little as an hour. At Embassy Loans, potential borrowers can often get their hands on much-needed cash in a day. The process is quick and easy.
  2. Do you have poor credit? Having a bad credit score and poor payment history means that it will be difficult for you to obtain a conventional loan. If you own a car, however, you can access a car title loan. Since the vehicle is collateral, there is no need for a credit check. The absence of a credit check also speeds up the loan process.
  3. Even though you have a loan on the title to your vehicle, you still get to use it. You maintain possession and use of the vehicle while you repay the loan. The lender keeps a set of keys and the title until the loan is repaid.

 

Disadvantages of Using Car Title Loans

 

  1. The biggest disadvantage of a car title loan is repossession. If a borrower fails to repay, a lender has the right to take possession of the vehicle. When the lender recovers the car or truck, they will then resell it to make up for any losses. Borrowers are only able to borrow up to 50 percent of the vehicle’s value. This helps the lender in making up for the loss in the case of repossession.
  2. Car title loans are short-term. The initial interest rates are not outrageous, but if you do not repay the loan in the given amount of time those rates change. Often, a borrower will not have the loan repaid within the agreed repayment period. The loan can be extended, but the additional interest can add up. This is why borrowers are encouraged to repay car title loans as quickly as possible.

 

If you have a repayment plan ready, you can use a car title loan to your benefit. Do some research and make sure you have a solid understanding of the loan process as well as repayment and reap the rewards of a car title loan.



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.