Find An Online Title Loan Provider In Florida
If you’re unfamiliar with car title loans and how they work in Florida, here are a few essential facts. First, these are high interest emergency loans usually available to people with no credit history who own a paid off vehicle but otherwise have no other collateral to secure the loan. Second, these loans are secured by the equity of the vehicle. Most direct lenders in FL can give you from 25 to 50 percent of the car’s value, depending on the car’s model and make.
How Does A Florida Title Loan Work
Secured car title loans work like mortgages and other equity loans. They’re theoretically given to people with bad credit to help them get back on their feet financially and work toward establishing their credit in the future. Lenders will do a soft credit check to see if a borrower is qualified, they will also want to ensure you can pay back your loan without falling behind. Online title loan companies in Florida will use the vehicle title as collateral, and the best part is that you don’t have to give up the car to the lender. Instead, they hold the vehicle’s pink slip, and you continue to use the car as you please.
What Do I Need To Qualify For FL Title Loans
Even with no bankruptcies on the borrower’s record, it has been challenging to get cash with a home equity loan or even a personal loan where you bring some collateral to the table. However, the popularity of these online title loans in FL now means these equity loans are possible for people throughout the state. You have an even greater chance of qualifying if you live in larger cities like Miami or Orlando, as most lenders will require you to submit to a vehicle inspection. In larger cities like these in Florida, it’s much easier to arrange a vehicle inspection and meet with someone to finalize the documents.
A car title loan is where they give you cash based on the value of your vehicle. The vehicle is the primary source of collateral for the loan. Therefore the main requirement is going to be an adequate vehicle value as opposed to having good credit. Bad credit is typically not an issue for most underwriters when it comes to title loans in Florida. Other requirements will include showing the ability to pay back the loan, having valid insurance on the vehicle and you’ll need to show a driver’s license for identification.
If you’re not too confident about your ability to repay a loan, you can always get a co-signer when applying with Highway Title Loans. This is one way to get a much more conservative loan that offers lower monthly payments. If you can get a person with good credit to sign with you and agree to make payments and pay it off if you fail to do so, that’s your best bet.
What Is A Typical Loan Amount Online Title Loans In Florida
Funding amounts in Florida average out at $3,000 and are based on a few factors. First, a loan underwriter wants to know the vehicle’s value as determined by regional resale prices. The worth of your car is what mainly determines how much money you can borrow. The other factor is what your employment status is and how much cash you make on a monthly basis. Even though an equity lender can use the vehicle equity as collateral, they still want to ensure you will make timely payments and not default.
You may be able to get up to 65% of the vehicle’s value in the form of a Florida title loan. So let’s say you apply for an equity loan using a car that has a resale value of $15,000. On average you may be able to borrow up to 10k based on that car’s value. Even though that’s a high amount there’s no incentive to borrow more than you need and you don’t need to always borrow the maximum.
What Happens After I’m Approved For Auto Title Loans In Florida
Once you sign the contract, you can expect to receive cash deposited into your bank account in about 1 to 2 days. After receiving cash, you can use it however and whenever you want and the best part is you can keep driving the vehicle. The payment terms are up to you and each lender sets a specific time period on when the funded amount must be paid back. When you take out an online title loan you only repay the amounts over a specific amount of time on the due dates. The interest rates, however, keep going up each month and the APR is very high. That’s why it’s important to pay off your loan early and even consider a buyout with a licensed lender in Florida.
In some cases, the amount of money your borrow with title loans in Miami can be paid back over a period of a few months to 2 years. If your loan is new and you are able to repay it plus interest, you will still owe money back. However, if you have trouble paying back title loans in Florida you will run the risk of falling behind on the loan obligation. In those kinds of cases, you might have to go into default. The company will then repossess your used vehicle. They will give back the vehicle, plus late fees and prepaid interest if there is any.
Repercussions Of Falling Behind On An Auto Title Loan
If you fail to pay back the loan or fall behind on the title loan payments, the lender can go to court and legally take the vehicle that’s being used as collateral. If this happens, you won’t have a vehicle to drive because they will have repossessed it and you’re now on the hook for any excess amount that’s not covered by the auction sale amount.
If you own your vehicle outright, an online title loan or even a pink slip loan is not going to be a problem in Palm Beach or Tallahassee. This is because the money you borrow is completely yours, in that you can pay it back or resell it. You have no right or obligation to take it back and the State of Florida has strict regulations in place to protect the amount you borrow. The same restrictions apply in cities such as Jacksonville and Miami but these locations also have municipal codes on the books that further regulate what companies can do if they fall behind. The only reason a company can go to court is if you default on your loan. In that case, the company will go to court, just as a lender would. The choice is between you going to court and losing the vehicle or continuing to default on your loan until you can begin again to make payments.
If it becomes clear that you won’t be able to repay your car or truck title loan or RV title loan without an extension, it’s best to work with your lender to come up with a payment arraignment. Often times this is as easy as calling your loan provider to see if they can lower the payment or come up with an alternative payment plan.