What is a title loan?
A title, or auto equity, loan is a loan that lets you borrow money based on the value of your vehicle. One of the benefits of this type of loan, is in most cases, you get to skip a lot of the lengthy credit, and financial history checks. These procedures when applying for any other type of loan are incredibly inconvenient in an emergency situation where you need money fast. Let’s be honest, it could happen to any of us at any moment for a variety of reasons. Florida Title or also called title loans are a great option when you need money in a hurry. When a credit or financial history check is required, it affects the amount you can borrow, but not whether or not you can borrow. That’s another benefit, for those with not so perfect credit score ratings. Typically, you can get anywhere from $500-$10,000 within a 24 hour period. This is why it’s a go to option for so many Americans when they’re in need of a little cushion.
What do you need to file?
Many loan companies allow you to apply online. What you need to apply is your vehicle title as proof of vehicle ownership, your drivers license, or other form of identification, proving you are a legal Florida resident, and that you are over the age of 18. (In the state of Florida you must be at least 18 to apply) Be sure to call around, before applying. You want to make sure that the company you choose accepts your specific vehicle. Also, the rates differ. When you have decided which company you’re going to apply through, make sure you provide all required documentation, and fill out all the paperwork they require. Once they have all of that in order, they will tell you how much you qualify for, based on the value of your vehicle. When you go to pick up your money, a lot of times they will have an agent come outside and snap some photos before they complete the transaction.
Once you have received your loan, you typically have 30 days to pay off the balance. However, a lot of times, if you remain in good standing they could extend this to sixty days or more, depending on the company policies, with whom you’re working with. Title loans are meant to be short-term. If the borrower defaults on an auto equity loan their vehicle will be repossessed by the loan company or have a lien placed on the vehicle. As with applying for any type of financial assistance, be sure to speak with a financial advisor before applying and make sure this type of loan fits your current situation.