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BlogBlogWhy Car Title Loans are an Alternative to Payday Loans

Why Car Title Loans are an Alternative to Payday Loans

Payday LoansBorrowing money is not as easy as it used to be. Banks and credit unions have tightened up their standards, making credit increasingly difficult to obtain for the average consumer. Because of this restriction of credit, several alternatives have popped up, allowing individuals to access quick cash. Payday loans are an easy way to borrow money as long as you are employed. Another alternative is the car title loan, which has its advantages over payday loans. Let’s take a look at both.

 

Payday Loans

 

In order to qualify for a payday loan, you must receive a paycheck. In other words, you must have a job. The idea with a payday loan is that you offer your next paycheck as collateral to borrow money now. The process is very quick and easy. You can fill out an application and receive your money within an hour. If you only need a few hundred dollars, a payday loan might be a solution. If you are looking to borrow more, you are out of luck with a payday loan.

 

Car Title Loans

 

While similar to a payday loan, a car title loan offers a borrower the opportunity to borrow a few thousand dollars. To qualify, a borrower must own a vehicle. It is preferred that the car or truck is paid off in its entirety. Embassy Loans can still process a car title loan if there is a balance remaining on a car loan; it just depends on how much is owed.

 

A borrower must be able to prove that they own the vehicle. They must provide the title and the title must not have any issues. Once an individual applies for a car title loan, Embassy Loans requires some documentation, including the title, to process the loan. Like a payday loan, the process is quick. Many car title loans are completed within an hour. One of the reasons why the processing is so fast is that there is no need to check a borrower’s credit history. The loan is secured by the vehicle.

 

Lenders like Embassy Loans will allow individuals to borrow approximately 50 percent of the vehicle’s value. If you own a car that is paid off and it is worth $10,000, you could borrow up to $5,000. This is clearly an advantage over a payday loan.

 

The Verdict

 

If you own a vehicle and need to borrow more than a few hundred dollars, a car title loan can provide you with the cash you need. The process is quick and easy. You can get started by filling out an application. Embassy Loans even allows you to fill out an application online.



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.