Car Title Loans in Coral Springs: How-to Guide & Top Tips
Nothing is certain in today’s world. One day we’re okay, the next day, we’re NOT.
Before a financial emergency strikes, it’s wise to prepare and consider different sources of funds to avoid making rash credit decisions.
Whether you need quick cash NOW or in the foreseeable future, it would be good to see if car title loans are a viable option for you.
Read on and get to know more about Coral Springs car title loans!
What Are Car Title Loans?
Car title loans, also known as auto title loans, are short-term loans that require you, as the borrower, to surrender the car title to the lender for the duration of the loan term.
The lender will hold on to your car title as security against loan default. This means that you are putting your car as collateral for the loan.
IMPORTANT NOTE: In an auto title loan, you will only need to turn over your car title to the car title loan company.
You read that right — you get to keep your vehicle and continue using it while making payments. No need to give up your car!
Of course, this means that you must adhere to the terms and conditions stipulated in the loan agreement.
This includes being diligent in making your monthly payments until the loan amount is paid in full.
Uses of Car Title Loans
The advantage of a car title loan is that you can use it for practically anything, similar to a personal loan.
Because the loan amount is released fast without prejudice to bad credit history, car title loans are often associated with emergency funds.
It’s the go-to of borrowers who want their loan approved FAST without the tedious credit check because they need money for:
- Medical bills and professional fees
- Tuition fees, short courses, or to even to service student loans
- Appliance or gadget purchase
- House repair or other household purposes
- Unexpected travel and accommodation
- Emergency funds for business
The list can be extensive, but you get the idea. A title loan in Coral Springs is a good alternative for short-term financial needs.
Loan Payment Terms
Generally, short-term financing like car title loans lasts for 15-30 days, but in some cases, it can be extended to a year.
The loan term, the interest rate, and how much money you intend to borrow from a car title loan must be discussed thoroughly with the lender.
The bottom line is — Coral Spring title loans offer flexible loan terms. Be open and discuss your financial situation with your lender to customize the auto equity loans to fit your lifestyle.
What Makes Auto Title Loans a Top Choice Among Borrowers?
#1 The Simple Loan Application Process
An easy loan application process is the top priority of title loans in Coral Springs, Fl. It does NOT require a stringent credit check.
Compared to other traditional sources of loans such as bank loans, pink slip loans or payday loans, car title loans won’t take much of your time.
There’s no need to worry about strict requirements, too! While having a stellar credit background is not a prerequisite, just be mindful that some lenders may still do credit checks.
TAKE NOTE: It is a common misconception that auto title loans are pre-approved. Some loans still have to go through a background check.
If you’re worried about your low credit score, don’t worry — you can still apply as long as you can prove you have the capability to pay the loan. Your credit score won’t weigh down the loan application.
#2 Receiving an Upfront Lump Sum of Cash
Did we say FAST loan process yet? If your loan documents are complete, you can expect to receive approval within a few business days or even on the same day if everything is in order.
Yes, the loan proceeds in Coral Springs can be released within the same business day because there is an option for the lump sum of cash to be deposited straight into your bank account.
Want to get the cash in person? This is also possible, and it doesn’t even affect the turnaround time of Coral Springs title loans!
#3 It Is Non-Exclusive
By non-exclusive, it means that the lender will not look into your organizational affiliation to be qualified for Coral Springs title loans.
Likewise, there is also no need to be a member of a credit union nor be part of the formal employment sector.
Freelancers, artists, entrepreneurs, retirees — all are welcome to apply as long as you have a steady source of funds to pay for the loan!
How Much Money Can I Get From an Auto Title Loan?
There are several factors that can determine how much money you can get from a car title loan in Coral Springs, Fl.
The make, model, year of the vehicle, mileage, and general condition of the car play a key role in the loan valuation.
Usually, the loan amount is 25%-50% of the car’s value. The minimum loan amount can be around $100 and can go up as high as $10,000 or even higher.
Requirements of Title Loan
First and foremost, to avail of a car title loan in Coral Springs, you must be a resident of Coral Springs, Florida and have ownership of a vehicle (such as a car, van, truck, and even an RV).
1. Car Title Registered in the Borrowers Name
A prerequisite is that the borrower must own a vehicle with a car title duly registered to their name, and in this case, YOUR name.
Since the vehicle is being put up as collateral, it is important that the lender establishes that you are the legal owner of the car.
Most lenders require a FREE and CLEAN title, meaning the vehicle does not have any outstanding loan. On the other hand, some just check the car’s equity.
2. Government-Issued ID
These are some of the acceptable government-issued IDs you can present to prove your identity to the lender:
- Social Security
- Driver’s License
- State ID
3. Proof of Income
A source of income is another vital requirement for having the loan approved, especially if you have bad credit.
To show the lender you have the capacity to pay the loan, you can present your proof of income from employment, social security, retirement, annuities, pension or any other financial document (for business owners, freelancers, entrepreneurs).
4. Vehicle Pictures or Actual Inspection
In order to assess the value of the car, you must submit pictures of the car taken from ALL sides.
Take a photo of the front, left side, right side, back and inside the vehicle, as well as the odometer (for mileage) and the VIN (Vehicle Identification Number).
The VIN provides information on the year and model, original body color, and country of origin. Usually, it can be found in the engine bay, at the driver’s side of the dashboard beneath the windshield or on the driver’s door sill.
On a case-to-case basis, the lender may request a physical inspection of the car.
5. Bank Account
If it’s your preference, the loan proceeds can be released via direct deposit to your bank account the following business day and, in some cases, on the same day!
Be sure to provide the correct and complete bank details in your application form to fast-track the processing time.
All private information shared with the lender will be kept in confidence.
The Loan Process In Just 3 Steps
Loan applications for car title loans in Coral Springs can be done online or at the storefront.
- Apply online, call, or visit in person – Aside from the details found in the title loan, you must fill up the application form and provide basic information as the borrower. Rest assured that all personal information will be treated with confidentiality.
- Submit the complete requirements enumerated above
- Get your cash
After that, don’t forget the most critical part: Timely payments!
What You Should Know Before Applying for a Car Title Loan in Coral Springs
Does it all sound too good to be true? Don’t worry — it’s all good and true when it comes to Coral Springs title loans
Reality check, though, just like in other loans apart from the interest, other fees may be charged by the lender. Some are upfront, while the others can be found in the fine print.
Make sure that you read the terms and conditions stipulated in the loan agreement to avoid being blindsided by escalating costs.
Here are other things you need to keep in mind before signing that contract:
1. Understand the APR
APR is short for Annual Percentage Rate. This magic number, expressed in percentage, refers to the yearly cost of borrowing money over the entire term of the loan.
The APR may include additional fees that are included in each transaction.
Before applying for title loans, the APR must be discussed in detail, including the accompanying fees that may be imposed.
2. Watch Out for “Other” Fees
Though not exactly hidden fees, we’ve listed some of the common costs often overlooked by the borrower until it’s too late.
Look out for these fees in Coral Springs Title loans and choose the lender that gives you the best rates.
This refers to the cost of processing the loan. Unknown to most, there are a lot of administrative expenses, even when you apply online.
It can be deducted from your loan or made part of the monthly payment. It is typically .5% to 1% of the title loan amount.
This is usually imposed when credit cards are used to make monthly payments.
Late Payment Fees
These are understandably added if one misses a payment deadline.
These may or may not be incurred in a Coral Springs title loan. It pertains to the service of having the vehicle valued by an appraiser.
This is more applicable to home mortgages, so be vigilant and choose a lender that does not include this fee.
These are charged if the borrower pays the full amount before the end of the loan term.
At first glance, this seems unfair to the borrower because paying your debt in advance is actually a good thing.
It will make more sense if you look at it from the lender’s point of view. The pre-payment penalty refers to the income that the lender would have made had the borrower finished the full term.
In other words, to avoid incurring penalties, stick to the loan term.
This is an add-on that some borrowers get to protect their car’s equity in case something happens, and they are unable to pay their loan (e.g., health issues, employment issues, etc.).
3. High or Low Interest Rates
Whether in Coral Springs or elsewhere, Car title loans are known for having high interest compared to the other traditional loan sources.
Banks and bigger financial institutions may offer lower interest rates, but the trade-off is a higher disapproval rate for those with bad credit history.
Title loans can be a good option if your needs are immediate. What you must look for are Coral Springs Title Loans that offer competitive rates.
4. The Risk of Repossession
There is no way to sugarcoat this, but when you default on your loan, there is a chance that your car will be repossessed.
But…this will only happen in the EXTREME case when you are unable to pay the loan on its due date.
Our advice? Get all the facts you need prior to applying for a loan.
This includes asking the lender about their policies on repossession.
Quick Tips on How to Manage Your Finances and Avoid the Risk of Repossession
#1 Begin With the End in Mind
Before going into the loan process, find out how much money you really need, forecast your expenses, and imagine what it will be like when you set aside the money allocated for payment of your title loans.
Think worst-case scenario, and if the remaining budget is manageable, it’s a sign!
#2 Read the Fine Print!
If you’re fully decided to apply for the car title loan, GO for it. But take time to read and understand the terms and conditions of Coral Springs Title Loans completely.
Don’t hesitate to ask questions such as:
- Are the interest rates advertised charged per month or annualized?
- What fees are included in the APR?
- How much cash will I pay in total?
- If I cannot make the full payment at the end of the loan term, what are my options before repossession?
#3 Avoid Going Into a Debt Cycle
When the loan term is up, and the borrower is unable to pay the loan in full, some lenders may offer to renew the loan.
This will entail another round of fees and interest rates which can balloon to an even bigger debt than they originally had.
If you’re not careful, you may end up paying bigger interest rates than the actual loan amount.
Borrow only what you can pay back within the term of the loan.
Conclusion: Time to Apply!
These days, having access to fast cash through a convenient loan application process can take a lot of pressure off your back, especially amidst a financial crisis.
Car title loans are a convenient way to get that much-needed cash. Many lenders in Coral Springs, Florida, offer fast, hassle-free loan processing!
The required documents are basic, so you just have to find the right lender in Coral Springs that meets your needs.
Time to take the next step and look for loan options in Coral Springs, Fl and apply!