A car title loan in Florida is a great option if your credit is poor, as title loans will use the equity that you have in your vehicle, rather than your credit score.
When you need to get some fast money, it is one of the fastest options that you can get, you can get a payday loan, but that will only get you a few hundred dollars, a title loan in Florida can get you up to $25,000.
There are potential problems with title loans if you do not make your payments, your vehicle can get repossessed, and you could potentially lose your vehicle.
The auto title loan lenders in Florida have to disclose the right to repossess your vehicle, the law Chapter 537, requires the car title lenders to disclose the borrower’s legal rights, and that the lender can then repossess the car, and sell the vehicle to recover their money.
Vehicle Title Loans
You can get a title loan on different types of vehicles, you can get them on cars, trucks, commercial vehicles, motorcycles, boats, and airplanes too.
As long as your vehicle has the equity in it, the lender will be able to help you to get the money that you need, most lenders should be able to get you the money within 24 hours.
You must also have the title to your vehicle in your name, with no additional lienholders, and you must also be able to prove that you have the income to support your title loan payments.
Finding The Right Title Loan Company
With many options for title loan companies to choose from, it is difficult to know who will be the right company for you, so you should shop around to find the lowest interest rate and the company that will give you the most money.
If you do not shop around, you may end up with a title loan that will put your vehicle in danger, as the interest rate will be too high, some companies will charge you triple-digit interest rates, with high monthly payments.
Take your time and make sure to take with or apply with different companies, it can be the difference between having a good title loan experience and having a bad one.
Remember title loans are much more expensive than bank loans, but with title loans, you do not need to have good credit, as long as you have the equity in your car, and the income to support it, you can get funded.
Bank loans will be approved based on your credit score, and they can take a few weeks to get funded, with a title loan you can get the money within 24 hours with most companies.
Terms For Your Title Loan
It is best to find a title loan that will offer you terms of up to 36 months, but make sure that there are no prepayment penalties, so the term will make your monthly payments low.
Short-term title loans can be a problem and can become a debt trap, 30-day title loans are not good, as the payment that you will make will only pay for the interest, and the lender will roll over your title loan to extend the term for another 30 days, this can be done multiple times.
It will be best to find a lender that offers amortized payments, so the payments will go towards your interest, and your principal balance, so you are paying down your title loan balance every month.
Car Title Loans Are Regulated in Florida
The Florida Title Loan Act is used to protect borrowers from title loan lenders charging too much interest, and making the car title loan terms too short.
All lenders who want to do title loans in Florida have to be licensed, also all borrowers need to see a copy of the contract before they sign it, it will need to show how much interest they are charging, and all of the terms of the title loan.
In other states, they will also have to be regulated, for example, title loans in Michigan have to comply with the CFPB, as well as all of the state regulations.
Title Loans are not permitted in all states, but for the states that they are allowed, it is a good way for the borrower to use the equity in their vehicle, and they still get to keep their vehicle.
In the other states that do not allow title loans, most people will use auto pawn loans to get the money, but with the auto pawn, the lender will hold on to the vehicle, so they are not as convenient as title loans.
Fast Money With Equity Title Loans
If you have bad credit, then these sub-prime types of loans are good to get some fast money, you will qualify with your vehicle equity, the title in your name, and the income to support the loan.
It is possible to get a no credit check title loan, but most lenders will not do them, they will want to run your credit, see your payment history, and check that you are not in bankruptcy.
using the equity in your car is better than getting a payday loan because with payday loans you can only get a few hundred dollars, but with title loans you could get up to $25,000, depending on your equity value.
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