Car Title Loans in Coconut Creek: Should You Apply?
Do you need to settle unexpected medical bills, unforeseen business expenses, or service student loans? But can’t get cash advances for this sudden cash emergency?
A car title loan just might be the best solution to your problem!
This type of loan is famous for being CONVENIENT, INSTANT, and EASY. With a clean title of your vehicle, your loan can get approved in just 1 business day.
Not only that, but there’s also hardly any paperwork involved, so it’s also hassle-free!
What Are Auto Title Loans?
A car title loan is a form of short-term financing loan. This kind of loan usually has to be repaid in 30 days.
Because of the 30-day loan duration, a car title loan is also known as pink slip loans or payday loans in Coconut Creek.
But should you sign up for one? Let’s look at the ups and downs:
Pros of Getting a Car Title Loan
Are Coconut Creek title loans the right choice for you? Check out these advantages:
#1 You Get Your Money Fast
Car title loans are great for people who are NOT qualified to get approved for a personal loan due to a bad credit score, unemployment, or other reasons.
It’s also a good solution if you need to get your loan proceeds TODAY since regular loans take at least several days to get approved and require you to submit a ton of documents first.
#2 You Can Keep Driving Your Car
For car title loans, you surrender your car title in exchange for your quick cash. For your title loan, your car is the collateral.
However, Coconut Creek title loans lenders won’t take your actual vehicle. They only hold on to your car title, and you still get to drive and use your car as usual.
#3 It’s Super Convenient
All the required documents you’ll need for auto title loans are either already lying around your house or very easy to acquire.
And also, you can complete the ENTIRE loan process in any way that suits your situation!
Title loan companies have different ways to cater to you: You can apply online, by phone, or go straight to their office.
#4 Poor Credit Is Fine
Unlike traditional loans like a credit union or a bank, lenders of car title loans don’t care if you have a bad credit score.
Some of these lenders DO conduct credit checks, but they don’t make credit decisions solely based on that.
Having a bad credit score WILL NOT make you ineligible for auto title loans because they look at your ABILITY to pay instead of focusing on what they find during your credit check.
But of course, borrowers with good credit history get more benefits.
Since this further assures the lenders they definitely have the ability to pay them back, these borrowers have more negotiating power and can push for much lower interest rates.
Cons of Car Title Loans in Coconut Creek
Here are the drawbacks of getting title loans in Coconut Creek, Florida:
#1 High Interest Rates
The interest rates that car title loans companies charge can be as high as 25% in monthly payments. Converted into the annual percentage rate, that comes out as 300%.
That’s higher than what most credit card companies charge!
To somehow lower the interest amount you’ll owe, take out the minimum loan amount if it’s possible in your situation.
When your car title loan lender gives you the maximum loan amount you can borrow, take only the amount you urgently need.
The lesser the principal debt you have, the lower your interest amount will be too.
#2 Risk of Losing Your Car
A bigger drawback than high-interest amounts is the possibility of your lender taking your vehicle.
If, in the end, you find yourself no longer capable of ever repaying your title loans, your lender will have to take your car and sell it to recover their loss from your unpaid debt.
If the total amount you owe them is bigger than the proceeds from selling your car, then you’re off the hook for the difference.
But if your car sells for higher the total amount of your debt, your lender gets to keep whatever’s leftover.
But what if, after a few rollovers, your debt is ballooning, and you still don’t see yourself being capable of paying your title loans by the next due date?
Companies of auto equity loans would rather have you pay your title loan back than take your car and sell it.
To avoid losing your car, get in touch with a customer service representative from your title loans lender.
Let them know about your situation and ask them to draw up a new repayment plan that suits your current situation. They’d be happy to help you out so that you can pay them back.
Required Title Loan Documents
Start by gathering these documents for a speedy loan processing:
1. Car Title
Of course, the most important document you’ll need is your car title. Your lender will be holding on to this for the whole duration of your loan since your car will act as the collateral.
Your car title should be CLEAN and LIEN FREE to be eligible for Coconut creek title loans. This means that you have to own your car’s equity and prove that it is NOT on collateral under a different loan.
For faster loan processing, it’s also better to put a car SOLELY under your name up for a car title loan.
TAKE NOTE: A vehicle’s title under two names will STILL BE ELIGIBLE, but your lender will require additional documents. The co-owner will also need to put their name on the loan application form as a co-borrower.
2. Government-Issued ID
This is to assure your Coconut Creek title loans lender of your identity.
Preferably, submit one with a photo of yourself, like a valid driver’s license or a passport.
Your name that appears on this ID also needs to be the EXACT SAME as the name in your vehicle’s title.
3. Proof of Residency
Your auto title loan lenders need to know that you reside in Coconut Creek to approve your loan application.
Any of your utility bills or a copy of your lease contract will do for this requirement.
4. Other Vehicle Documents
Aside from your title, you will also need to submit your Vehicle Registration and Insurance documents.
5. Photos of Your Vehicle
You will also need to submit 4 photos of your vehicle.
Take a picture of the front, the back, and the 2 sides of your car. If you’re planning to visit your car title loans lender’s office anyway, they can also take these pictures for you.
6. Proof of Income
If you’re employed, a pay slip will do for this requirement.
If not, any document that proves your income is accepted.
These include proof of business income, proof of inheritance, a title of your other properties, social security benefits, proof of retirement income, and more.
Call your title loans representative if you’re unsure which document will qualify in your situation.
7. Character References
You will also need to provide 2 or 3 character references of people NOT related to you.
This will also help guarantee your lender that you can pay them back. Along with their references, you will also need to provide their contact information and addresses.
8. Bank Account
If you wish to receive your money through a direct deposit, you will also need to give your lender your bank account details.
If not, you can skip this requirement.
The Loan Process of Coconut Creek Title Loans
We’ll walk you through 4 easy steps of getting a title loan in Coconut Creek!
Step 1: Get Pre-Approved
Before you visit your title loans lender in Coconut Creek, you can speed up the process if you apply online.
Simply visit the title loan company website and fill out the pre-approval form with your basic personal information.
After that, wait for a representative from the title loan company to contact you and let you know what the next step is.
During the call, they will also let you know the estimated amount you can loan. If you have any questions about their title loan, they will also be happy to answer those.
You could also set up an appointment during the call to ensure that your visit will be quick.
Step 2: Verify Your Vehicle
Next, take all your gathered title loan documents and make sure you have EVERYTHING.
Then, drive your car to your title loan lender’s location in Coconut Creek for verification and further assessment.
Title loan companies determine your car’s current market value by considering the following:
- Year
- Make
- Model
- Mileage
- Overall current condition
Whether or not your title loan application will be approved heavily depends on your car’s eligibility.
Step 3: Contract Signing
After your car passes the final approval, you will be able to sign the contract.
Your lender will present the loan amount that you can take out, the terms, and the interest rate for your loan.
Step 4: Get Your Money
After signing the loan contract in Coconut Creek, you can get your money!
You can receive your loan amount via cash, through a bank deposit or money transfer, or you can also opt to have it wired to you.
Tips You Need to Know Before Signing
Here are some things to remember before you sign your title loan contract:
#1 Read the Fine Print
Read your loan contract THOROUGHLY.
There might be contract terms hidden in the fine print that you don’t necessarily want to agree with.
You can have these changed by talking to your lender or choosing to go to a different one if you don’t reach an agreement.
#2 Check for Hidden Charges
Are there pre-payment penalties? Several loan lender’s fees?
The total amount you owe in Coconut Creek should only consist of your principal loan amount, the interest, and finally, your loan lender’s fees.
Double-check your contract for hidden fees or additional charges before you sign.
#3 Negotiate
Don’t hesitate to ask for what you want!
If you have a good credit score in Coconut Creek, it’s easy to bargain for lower fees and better payment terms.
But even if you don’t have a good record, you can still negotiate!
Your loan lender might not be able to cater to all our requests, but as long as they’re reasonable, they might be able to meet you halfway.
#4 Ask Questions
Lastly, if there’s anything unclear or you’re unsure about, don’t be afraid to ask!
Your loan lenders will be happy to explain everything to you, no matter how many questions you have.
Frequently Asked Questions
Still have questions about your title loan in Coconut Creek? We got you!
How Much Cash Can an Auto Title Loan Give Me?
The maximum amount you can loan in Coconut Creek is about 25% to 50% of your car’s current market value.
Do I Need a Steady Income in Coconut Creek, Florida?
NO.
You don’t have to receive your income in monthly payments like employees to be approved for title loans.
Are Auto Title Loans Legal in Coconut Creek, Florida?
YES.
Car title loans are perfectly legal and safe. They are all governed by Florida title loan laws and regulated by the state.
All their imposed policies, interest rates, service fees, etc., are also completely legal and follow state regulations.
For instance, under Florida statute 537, there are certain restrictions for title loans companies against extra charges, limits on lender’s fees, sales representation, etc.
Do Title Loans Affect My Credit Score?
NO.
Just like how a bad credit history won’t stop you from getting title loans, it won’t affect your credit score either.
Title loans are not part of your credit in any way, and they won’t be affected by it, or vice versa.
Can I Increase the Amount of My Loan?
If you did not borrow the maximum amount offered to you initially, YES, you can.
Contact your lender representative to process this.
What If My Car Isn’t Registered or I Don’t Have Insurance for It Yet?
It’s fine!
Your loan lender will help you get an insurance policy for your car and assist you in registering your vehicle in Coconut Creek.
Can I Repay My Debt Early?
Technically, you can, but some lenders charge a pre-payment penalty for doing this.
Even if they do, we recommend you still pay your loan early if you already have the repayment money with you. This way, you get rid of the risks of getting stuck in debt or losing your car.
Not to mention the peace of mind you’ll get in knowing you are debt-free!
Final Thoughts
Taking out car title loans is a good solution if you are in URGENT need of fast cash.
With a 1-business-day loan approval procedure and accommodating customer service, no other financial institution can beat its reliability and convenience.
Just be aware of the risks and be responsible for your borrowing and keep these 5 things in mind:
- Borrow the SMALLEST amount you can
- NEGOTIATE for better terms in your favor
- Read the FINE PRINT
- Double-check for HIDDEN and ADDITIONAL FEES
- When you’re done reading once, ask ALL of your questions and READ IT AGAIN THOROUGHLY. Some companies can be sneaky so do your best to protect yourself!
And that’s all! We hope you learned all you needed to know to make an informed decision.