How Car Title Loans In Miami Work

By Author: Stam Bett
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A car title loan is a secured advance where a consumer can use their title as collateral, as opposed to an unsecured line of credit. Only about half of the states in America allow title loans. These states include in no particular order, Florida, Texas, California, Kansas, South Dakota, Tennessee, Mississippi, South Carolina, Nevada, New Mexico, Louisiana, Wisconsin, Idaho, Georgia, Alabama, Arizona, Delaware, Illinois, Missouri, Utah, and Virginia. Because these loans are available in Florida, car title loans can be obtained in Miami.

If you possess an automobile such as a car, truck, or van, it is easy to receive a car title loan in Miami, Florida. Regardless of your personal credit history, up to and including bankruptcy, auto equity loans are still available in Miami, Orlando, Fort Lauderdale, Jacksonville, and Tampa. You can receive cash funds, between $500- $15,000, depending on the value of the car. The loan ensures that if a borrower ever defaults, their automobile will be taken in as repossession. If you are insolvent and don’t have the ability to pay back the loan, they may auction off your car and keep ...
... all of the profit. Consumers usually take out these loans due to unforeseen circumstances such as a loss of employment, medical emergency, attorney fees or even poor spending habits, among other situations. The borrower can use the loan money now, and repay it to retrieve their title back.

Usually a title loan’s approval isn’t based of credit score, but is heavily weighted based on whether or not the borrower has a steady job and income. The lenders do not check credit, and consumers only need proof of minimal income verified, with the customer’s employer. The car must be owned exclusively by the borrower and not leased or financed. The borrower must have the car’s title on hand in order to receive a car title loan in Miami, Florida. Simply having the car’s registration is not enough.

Car title loans are meant to be paid off in a fixed amount of time. A borrower can also roll over the loan, but this is not recommended because this habit can substantially increase the interest paid on the loan. Loans may go all the way up to half of the vehicles value, as verified from the Kelly Blue Book. More than half of consumers that take these loans out are considered low income. With the recession still occurring, these advances are considered risky sub-prime loans, but are also necessary because other kinds of loans are simply not available. Title loan companies take a huge risk when they lend, and they take several precautions in order to ensure that everything goes according to plan.

All in all, after the Great Recession of 2008, the national banks severely cut back on the amount of loans they offered to the public. This has caused a hole, into which companies such as Miami title loan companies have stepped. They fill a valuable role in the nation’s economy by providing quick cash, with little questions asked.

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