Find A Title Loan Provider in Florida
If you’re not familiar with car title loans and how they work in Florida, here are a few important facts. These are short term 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. These loans are secured, that is, they’re backed by the auto title of the vehicle. Most Florida lenders can give you from 25 to 50 percent of the value of the car, depending on your car model and make it.
How Does A Florida Title Loan Work
Secured car title loans work like mortgages and other secured 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. As 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 vehicle as you please.
What Do I Need To Qualify For FL Title Loans
In the past, even with no bankruptcies on the borrower’s record, it has been difficult to get a loan based upon collateral and home equity that equals more than 10 percent of the bluebook value of the vehicle in Florida. However, the popularity of these online title loans FL has meant that car title loans are now available to people all 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 drivers license for identification
If you’re not too confident about your ability to repay a loan, you can always get a cosigner. 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.
How Much Can I Get From A Title Loan Provider In Florida
Know the value of your vehicle before you apply with a registered title loan company in Florida. If the title loan price seems exorbitant, it’s because the vehicle needs to be inspected in person. You need an estimate of the value of your vehicle before you get your loan. An online search for the wholesale value of your vehicle will give you an idea of the value based upon the car model and options.
You can get up to 50 percent of the value of your car. For instance, if your vehicle is worth $10,000, the minimum loan amount is $5,000. If the vehicle is older than five years, you can get further discounts on the loan amount. Future terms will be worked out between you and your lender once the loan proceeds are received. Also, consider what the current state lending regulations are in Florida for auto title loans. The requirements seem to change often, so check with the Florida Department Of Financial Services before you agree to a title loan contract.
What Happens After I’m Approved For A Florida Title Loan
Once you sign the title loan application, you can expect to receive cash deposited into your bank account in about 1 to 2 days. After receiving the loan proceeds in FL, you can use it however and whenever you want and the best part is you can keep driving the vehicle. The title loan proceeds are unlike a bank loan because with a bank loan you have a legally binding contract to repay in standard monthly payments for a certain amount of time. When you take out an online title loan you only repay the amounts over time on the due dates. The interest rates, however, keep going up each month and the rates in Florida are very high. That’s why it’s important to pay off your loan early and even consider a buyout.
In some cases, the amount of money you owe can be immediately paid back with the money you get in the form of a refinance. 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 the loan back you might not get approved for additional funds. 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 A Title Loan in Florida
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. 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 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 continue 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 Florida 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 title loan provider and seeing if they can lower the payment or come up with an alternative payment plan.