What to Consider When Taking Out a Car Title Loan in Florida
If you live in Florida A car title loan may be the perfect option to get a short-term, quick cash injection.Repairs to your home, medical bills and accidents may be a surprise to even the most experienced cash-strapped.When paychecks aren’t coming in promptly enough, expenses get piled up, and emergency situations draw money.When financial assistance urgently required, Florida car title loans from companies like Oak Park Financial can help.
Is a title loan a type of credit?
Title loans for cars (also known as pink slip loans) are a kind of personal loan that is similar with payday advances.In order to get a title loan, the borrower transfers their car title to the title loan business as collateral.They will then receive funds in exchange.This amount must be returned by way of interest and fees for lending within a specific time frame.After the borrower has paid back the loan amount the title of the car returns to them.
If the borrower fails to repay the loan on time the title loan company will take control of the vehicle that is collateralized.To qualify for a title loan, in the majority of instances the borrower must own the car in full.The title loan company is able to offer the car for sale in order to recover money lost when the borrower is in default on the loan.Some lenders, however, will accept vehicles with a smaller loan.
What are the things to consider when taking out an Title loan?
Be aware of the disadvantages that come with title loans. These loans typically have expensive fees, and can need borrowers to buy additional items like roadside assistance. The costs can are cumulative, which means that borrowers are required to repay more than the loan they took.
Due to the high rates of interest and charges associated with most title loans, potential borrowers should look at the following options prior to looking for a title loan
- Government assistance
- Lending money from family members and friends
- Examining possible alternatives (i.e. the possibility of payments plans, the urgent need for funds, etc.)
- Employers are requesting advance payments on salary
- Credit union
- Talking to an advisor to credit
Consider these options first to reduce stress and money.
Offer Fast Funds
In reality, Florida title loans do give quick funds and can help in times of need. With the necessary information in hand the borrowers may be paid in as short as a couple of hours.
People with bad credit or other financial challenges are often eligible for titles loans due to the tangible collateral. They do not impact the credit score of the borrower if they do not pay back the loan. The borrower is free to drive their vehicle when they pay their loan in time regardless of whether the title loan company is the owner of the vehicle.
What laws apply to title Loans In Florida?
Florida law and regulations ensure that title loans are made in Miami and across the state safe and with more protection for borrowers as well as lenders. For instance, Florida auto title loans require written agreements between the borrower and the lender. The written agreements for title loans offer guidance on loan terms and a guarantee that both parties are aware of the terms of the loan.
Without such a contract the borrowers could lose their cars due to unclear terms of loans or sudden modifications that weren’t included in the initial verbal agreement.