A situation has arisen, and you need cash – fast. A bank loan is out of the question and interest rates are too much for payday loans. In that case, a title loan may be just the ticket to see you through your financial predicament. Because you’re a resident of the Sunshine State, here’s what to know about title loans in Florida.
Explain Title Loan
This is a short-term loan that’s usually due in 30 days or less, although it’s often possible to get an installment loan on which you’ll make payments for a year or so.
The loan is secured by your vehicle, although you may keep possession of it while you’re making payments. The lender will simply hold onto your vehicle title until the loan is repaid. The vehicle must be in your name and the title must be lien-free.
Because the vehicle will serve as collateral, you risk losing it to seizure if you don’t make timely payments. Be sure you can repay this kind of loan before signing off on one.
Depending on the lender, “vehicle” can mean car, truck, RV, motorcycle, or boat.
How Much Can I Borrow?
This varies by lender, but in Florida, most borrowers can expect to get between 25-75 percent of their vehicle’s value, which is ultimately determined by the lender. The amount lent usually ranges from between $100 and $10,000.
To help give you an idea of the amount you can expect, some lenders offer a loan calculator onto which you can input your vehicle’s make, model, age, mileage, vehicle identification number, category (sport, hatchback, etc.), and overall condition.
Note that while your credit history may be perused, a loan is still possible with bad credit. Title companies focus on your vehicle and ability to repay.
What is Needed for Loan Approval?
In addition to a vehicle in your name and a lien-free title, you’ll need to prove you have the income for loan repayment. If you’re employed, you’ll need pay stubs or bank statements or the like. You can also show proof of income from self-employment, a settlement, retirement, pension, or a rental property.
By the way, if you have more than one name on your vehicle title, some Florida companies will help you clear it up so you can use it as collateral.
For a loan, you’ll also need to be at least 18 and have proof that you live in Florida. Some lenders also require proof of insurance and personal or professional references.
In addition, you’re required to submit recent, quality photos of your vehicle: front, back, and sides, as well as a shot of your odometer.
The good news is that you can apply for Florida title loans totally online, from the comfort of your home or office.
How Long Does the Process Take?
As we say, you can apply for a loan online. Once you’ve submitted required materials, you can expect a decision that day, often within minutes. Because your vehicle serves as collateral, approval rates are high. Once you’re approved, your loan can be paid within 24 hours.
Some lenders will deposit the funds straight into your account, so be sure you have an account that’s set up for ACH transfers before you apply. You also may have the opportunity to pick up the funds, either at a brick-and-mortar site or a MoneyGram location.
Now you have all the essentials regarding title loans in Florida. In the main, you’ll need a car, clear title, and sufficient income. That’s in addition to a few more documents. Gather everything you need, then apply. It’s that simple.