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BlogBlogThe History of Car Title Loans

The History of Car Title Loans

LoanIt was in the 1990s that car title loans first emerged in the financial world, opening up a brand new market to individuals who may not have otherwise had access to borrowing money. A car title loan is a form of secured loan where a borrower offers the title to his or her vehicle as collateral. The title loan company places a lien on the borrower’s title in exchange for a loan amount. When you then repay the loan, the lien is removed, and the title returns to the borrower.

How Is a Title Loan Obtained?

Borrowers will seek the services of a title loan company like Embassy Loans. They will fill out an application and then must submit some documentation as part of the loan process. Embassy Loans will need to verify a person’s identity, residency, and see that the title and the vehicle have matching VIN numbers. Once verified, Embassy Loans moves on to the next step – appraisal.

How Much Can Be Borrowed?

Embassy Loans uses current blue book values to determine the value of a vehicle. Typically, lenders will allow a borrower up to 50 percent of the value of the car or truck. This limit is to protect the lender. If a borrower were to default on the loan, the lender can take possession of the vehicle and sell it to try and recoup the losses. It is much easier to make up those losses when less than 50 percent of the value was loaned out.

Why Car Title Loans Became Popular

As lending increased throughout the 1990s and into the early 2000s, there was not a market for those with poor credit ratings. Alternative loans like car title loans were the response to this need. Individuals with bad credit but who own a car, now have a way to access cash when they need it. Embassy Loans offers borrowers the ability to go through the entire loan process online. In many cases, a car title loan can be processed in as little as an hour. Because of the lack of credit checks and other paperwork, processing an auto title loan takes much less time than a traditional loan from a bank.

The Future of Car Title Loans

Car title loans still represent an easy way for those who own vehicles to borrow money when they need it. Whether it is an emergency expense or a job layoff, car title loans are a big part of today’s lending market and will continue to be in the future.



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.