Car title loans are a type of secured loans where the borrower uses their car title as collateral. It’s a fast way to get a short-term loan – you simply hand over the title to the lender, and they keep it until you’ve completely repaid the loan. This type of loan can be risky, but it’s a good option in case you need the money immediately. In order to borrow against your vehicle, you need to have some equity in your car and in some cases, it’s required that you have already paid off all the loans you might have used to buy it. The greater the value of your four-wheeler, the more you can borrow, but you won’t get the whole value of the car in a loan. Lenders will give you the amount that they can quickly get for your vehicle in case they need to sell it. One of the biggest problems with these loans is losing the car.
There are plenty of companies in Florida that specialize in providing auto title loans. They promise you the money in a matter of minutes after you’ve handed your car title. It’s usually quite easy to get the loan, the whole process typically lasts around 15 minutes.
What might be asked from you to provide to the lender is a proof that the vehicle is lien free, that your monthly income is around $1000 or more and you’ll need to provide the proof of residency (phone bill, utility bill, or a bank statement in your name). Also, you need to be at least 18 years old in order to be able to apply for title loans in Florida.
Often, you can fill out the online application form and simply wait for the loan specialist to contact you, or you can go directly to the office with all the necessary documents. Before approving the loan, the lender will inspect your vehicle. They typically won’t ask for your car keys, so you get to keep it. As soon as the loan is paid back in full, you get your four-wheeler back.
Because of the high risk that comes with title loans, they are not intended to be a long-term solution.
If you decide to apply for a title loan Florida might be a good place to look for a lender.
No credit checks are needed when applying for a title loan. Your credit history or credit scores play no role in getting you the money. In case you don’t pay the loan before or on the due date, or the extension date, you lose your collateral, but nothing is reported to credit bureaus.
In Florida, loans average from $500 to $5.000, depending on the value of the car and you are given the funds the very same day if you’re in need of the money fast which, since you opting for a title loan, you probably are. Often, other vehicles like motorcycles, boats, RVs or jet skis are accepted as collateral as well.
Lenders also promise you full privacy. The transaction is between you and them, no one else will be privy to this information.
Title loans are illegal in 30 states, while in others, such as Florida, they are not. Florida Title Loan act governs the title loans in Florida. In requires title loan lenders to be licensed by the state Office of Financial Regulation. Also, it requires both you and the lender to sign an agreement before the loan is offered. Make sure to read and understand the agreement before signing! Also, in case the lender is keeping your car as well, next to the title, you should have a chance to remove all your personal property from the vehicle.
It’s important for you to know that the title loan might be risky for you, but not for the lender. That’s why you should think carefully before opting for this type of loan and understand your and the lender’s rights.
It’s interesting how you said that a car title loan is basically a loan that uses the car’s title as leverage. My wife and I have a car that we don’t mind doing this kind of thing for considering that we need a bit of money. We’ll have to look for a good title loan service that will allow us to do this.