Skies can be cloudy in The Sunshine State, when you need more cash than you have to cover a situation. Well, take heart, because if you have a vehicle and its title, and regular income, you stand a great chance of qualifying for what’s called a vehicle title loan, which provides fast cash.
With that said, here are some things to know before getting a title loan in Florida.
Describe Title Loans
These short-term loans are usually due in 15 to 30 days — sometimes longer. In exchange for one, you must relinquish your lien-free title to the lender until the loan is paid off. You do get to continue using your vehicle – car, truck, motorcycle, recreational vehicle, or boat — as you normally would while you’re making payments. This is a major plus and where title loan companies differ from pawn shops.
Do note your vehicle secures the loan. Because it serves as collateral, you could lose it if you don’t make payments as agreed. So, be 100 percent certain you can repay the loan before taking it out.
Can I Get a Title Loan with Bad Credit?
You absolutely can; people do every day. Unlike traditional bank loans, title loans are not dependent on your credit history. Why? Because they’re secured by your vehicle. Most bank loans are unsecured. While some title lenders might pull your credit reports, they won’t make decisions based on them. In fact, if your credit is shaky, you might be able to obtain more from a title lender than you could from a bank with a personal loan.
How Much Can I Get?
That largely is up to lenders, depending on your vehicle’s value. That’s determined by the property’s make, model, age, mileage, and condition. You can generally expect to be offered between 25 percent and 50 percent of the fixed value. Most loans are for between $100 and $10,000, with $1,000 being the average.
Your offer will also depend on your income and ability to pay.
What are the Requirements?
The title loan industry is regulated by state governments, so title loans in Florida can vary somewhat from lenders elsewhere. For instance, you must be at least 18 and show proof of residency (utility bills, lease agreement, etc.). You’ll also need a government-issued ID.
You also must provide proof of income, such as pay stubs or bank statements. If you are not employed, income from sources such as a pension, settlement, rental property, Worker’s Compensation, disability, Social Security, etc., is also welcome.
You’re also required to submit photos of your vehicle, instead of taking it to the lender for appraisal. You’ll need recent photos taken in natural light and from all angles. Take shots of the VIN and the odometer reading as well.
How Fast is the Loan Process?
Bank loans, if you even qualify, can take days or even weeks. You can apply for a title loan completely online, from the comfort of your home or office and get a decision that day. Once you’re approved, funds are typically available by the very next business day. With most Florida lenders, you’ll have the option of picking up the cash, getting a wire transfer or overnight check, or getting a direct deposit.
So, those are things to know before getting a title loan in Florida. Before settling on a lender, find one that doesn’t have hidden for fees, but does decrease your interest rate by as much as half after you’ve made consistent payments.