Car Title Loans in Margate: Should You Get One?
Suddenly in the middle of a cash emergency? Don’t have the luxury of time or the patience to get through traditional loans? Is your car paid off?
Car title loans just might be the perfect solution for you! A title loan approval process is completed in just 1 business day, sometimes even as fast as 30 minutes!
But what exactly is a title loan, and how does it work? Is it the right solution to your current situation? Are you eligible for one, and what will you need to get approved?
We answer ALL of that and more!
What Are Margate Title Loans?
If you’ve heard of fast auto title loans, payday loans, or pink slip loans, those are all car title loans!
Whether you need it for school fees, a hospital emergency, household purposes, or a sudden business expense, title loans are a QUICK and EASY solution for your urgent financial needs.
A car title loan is when you take out a loan by handing over your car title to your lender in exchange for your loan amount.
A car title loan is a form of short-term financing. You usually have to repay the loan in 30 days to get the name payday loans.
And since it is a car title loan and not a car loan, you still get to drive and use your car as usual during the duration of the loan!
Are Car Title Loans Margate for You?
Let’s see whether this type of short-term financing is for your immediate cash needs.
Pros of Getting a Car Title Loan, Margate Florida
Let’s start with the advantages of a title loan…
Bad Credit History Won’t Stop You
If you have made bad credit decisions in the past, you are still probably eligible for a title loan.
Title loan companies look at your potential, not your past.
They assess your ability to pay back the loan and decide from there whether to approve or decline your title loan application. If you can prove that you can pay back your loan, your credit records won’t matter as much!
However, having an excellent credit score also pays off. With good credit, you get approved faster and with less hassle.
You have more negotiating power, get offered a lower interest rate, and generally get better loan terms easier than those with a bad credit score.
Unlike other lending options like banks and credit unions, taking out a title loan won’t need much paperwork and documents to submit.
The processing of a title loan only takes 1 day; compared to other loan types may take days or weeks to process, only for you to not get your loan approved in the end.
The chances of getting approved for a title loan are also significantly higher than other loan types since even those who have bad credit scores get approved!
Fast Cash for Unexpected Expenses
Get your money fast! You get it fast that you may even receive it in just 1 business day!
If you have your complete documents with you or get pre-approved online, the entire process from loan application to loan approval can be finished in less than an hour.
The best title loans companies even offer an option to process the entire loan online from the comfort of your own home!
Cons of Getting Auto Title Loans, Margate Florida
Here are the drawbacks of title loans you need to consider before applying…
The interest rate for title loans can be as high as 25% a month, equivalent to 300% in annual percentage rate.
That’s WAY higher than what banks and credit unions charge!
Aside from the high rates, title loans also charge a lender’s fee, a processing fee, and other miscellaneous fees that all have to be paid on top of the amount you loan from them.
Predatory Title Loan Companies
Make sure you do your research and choose the right lender!
Some title loans companies take advantage of the urgent situation and slip hidden charges in your contract. That’s why you should make sure to read your contract at least TWICE before signing!
You should also make sure you have read ALL the fine print and check for additional fees or unreasonable contract terms of your title loans.
Short Term Loans
Your title loan will be due as soon as after 30 days. But it’s best to start making payments before that day approaches if you can.
Short-term loans mean you also have a short window of time to pay back the principal amount with high interest and additional fees, and you might not notice your 30 days pass by quickly.
So when you get extra cash on your hands, start by slowly making early payments on your loan to lighten the load.
Risk of Losing Your Car
Of course, your biggest fear as potential title loan borrowers is probably the possibility of having the lender take your car in the end.
If you find yourself unable to make your payments at the end of your loan duration, your lender will take your car to restore their losses.
Still, think title loans Margate are for you? Then let’s start with what you will need first…
Required Documents for Title Loans Margate FL
Have these documents ready before starting the application process for a hassle-free transaction!
Government Issued ID
To ensure your auto title loan lender of your identity, you must present any government-issued ID, preferably one with a photo of yourself.
Note that your name as it appears here needs to be the EXACT same way as it appears in your car title to avoid issues.
Proof of Residency
To prove that you are a resident of Margate, Florida, you will need to submit any of your utility bills or phone bills, or you could also bring your contract of lease.
Proof of Income
Your proof of income can be in any form, as long as your lender can see that you have the ability to pay back your auto title loans when the due date comes.
Here are some documents that can serve as your proof of income:
- Proof of inheritance
- Social security benefits
- Property title
- Proof of business income
- Any other proof of income
You will need to submit 1-3 character references (depending on your lender) to further assure them that you can pay your auto title loans on time.
Of course, your car title is the star of the show. If your car title loan gets approved, your lender will hold on to your title during the entire duration of your loan.
Your car title must be solely under YOUR NAME and be CLEAN and LIEN-FREE to be approved.
Pictures of Your Car
You will also need to submit 4 photos of your car (the front, the back, and the 2 sides). If you already have pictures of your car, bring them with you.
If not, your lender can also take pictures of your car for their records.
Even though you won’t have to surrender your car to your auto title loan lender directly, they will still need to see your vehicle for further inspection and GPS installation.
Not all lenders of title loans Margate will require this, so it’s best to call your lender or to get in touch online first to make sure.
If you already have car insurance in Margate, Florida, have your documents with you when you apply for the loan in case your lender asks for it.
If your vehicle does not have insurance and your lender requires it, don’t fret! Your lender will be happy to help you get your car insured in no time.
Some car title loans companies will also require you to surrender a spare key of your vehicle.
So if you have one, take it with you just in case your title loan lender asks for it.
Car Title Loans Margate FL: The Loan Process
Let us walk you through the car title loan process in 4 super easy steps!
Step 1: Make Sure You Have All Your Documents
We’ve already listed the usual requirements for car title loans in Margate, FL, so double-check that you have all of them with you before you start the car title loan application.
Step 2: Apply Online
Online title loans are now available!
Some lenders of car title loans will even let you complete the ENTIRE loan process online, then have their representative meet you in a convenient location.
The next step in getting your car title loans approved quickly is pre-approved online.
Go to the website of the car title loans lender of your choice and fill out the pre-approval form on the first page of their website.
Then wait for a customer service representative to contact you shortly.
Alternatively, you could also give your auto title loan lender a call for pre-approval.
However, the pre-approval process is optional if you’re planning to visit your car title loans lender in their office anyway.
You can always opt to drive your car directly to your lender’s office, provided that you have all the loan documents that they require.
Step 3: Visit Your Car Title Loan Margate Florida
With all your documents in hand, drive your car to your lender’s office to process the title loan.
Your auto title loan lender will inspect your car, check your documents, and ask a few questions.
Step 4: Negotiate With Your Title Loans Lender
After approval, your lender will let you know the following information:
- How much cash loan you can take out
- What the interest rates are
- When you should repay the loan
- And other essential loan terms
This is where you negotiate.
The terms, interest rates, and loan amount isn’t final yet, so talk your way into lower interest rates and better payment terms!
When both of you have agreed on the loan terms, your lender will prepare your contract next.
When you receive your contract, make sure to read the FINE PRINT and double-check for HIDDEN FEES like prepayment penalties before signing.
Step 5: Get Your Cash
After signing the loan, the contract comes the fun part: You get your loan proceeds!
You can receive your loan proceeds through cash, a direct deposit to your bank account, money transfer, or any other way that is convenient for you.
How Do Loan Companies Determine the Value of My Car?
Different factors are taken into account when determining your car’s equity. Everything from the Make, Model, Year, Mileage, Overall Condition.
There might also be other factors that your lender based their value estimation on, which might differ from one loan company to another.
How Much Can I Get Out of My Title Loans?
It will depend on the value of your car and the current condition it is in. Usually, you can borrow from 25% to 50% of your car’s equity value.
Can I Increase the Amount if I Have Already Borrowed?
Yes! (if you did not borrow the maximum amount offered to you initially)
This is called refinancing; get in touch with your lender, and they will be happy to walk you through the process.
What Happens if I Can’t Pay on Time?
If you can’t pay by the end of the 30-day duration, you will have to pay a fee to extend the deadline for an additional 2 weeks or 3o days. This is called a rollover fee.
Your debt is “rolled over” for another 2 weeks or 30 days to give you more time to pay. This is where it gets risky.
If you’re not careful, your debt could easily balloon if it remains unpaid and keeps on rolling over.
If I Can’t Pay My Debt Back, Will It Hurt My Credit?
Think of it this way: these loans exist OUTSIDE of your credit score.
Having a bad one will not mean that you can’t borrow money, and not paying it back will not reflect on your records either.
What Are Pre-payment Penalties and Why Should I Avoid Them?
Remember how we said earlier to make payments when you have extra money before your loan is due to somehow lighten the load?
Well, some predatory loan companies want to discourage you from doing that.
Pre-payment penalties are charges that loan companies make when you make payments before the loan is due.
So before you take out a loan, make sure it’s a trustworthy lender that won’t have unreasonable fees like the prepayment penalties.
Frequently Asked Questions
Still, got questions? We’ve got you!
Do I Need a Bank Account to Get Approved?
You DO NOT need a bank account to apply or get approved for a loan.
You will only need one if you choose to receive the loan amount through your account.
If you choose to get your money this way, the account has to be in your name, and it doesn’t have to have a good record.
Do Lenders Perform a Credit Check?
Most loan companies will perform a credit check as part of the application process. This is mostly to determine the amount they can lend you and the interest rate to give you.
But as we said above, a bad credit score won’t make you ineligible to qualify for this type of loan.
Do I Need to Be Employed to Get Approved?
If you can prove that you can pay back your debt by the time it’s due, you can get approved.
It doesn’t matter whether you pay your debt from your salary, business, social security benefits, or anything else.
But of course, a strong, steady income will get your application approved faster and might get you better contract terms.
What Happens if My Car Isn’t Registered?
Just let your lender know if you haven’t been using your car for a long time and it has passed the registration. They will be happy to assist you in registering your vehicle.
It’s also best to call them first to speed up the process.
What Are the Different Modes of Payment?
In Margate, you can pay through cash, check, online payments, bank deposits, and other common payment options.
Call your lender for more information since these options may vary.
Can I Still Sell My Car After?
When you’re done paying off your debt, then your title is CLEAN and FREE again. It’s just as good as before!
It is also possible to sell your car while you still owe money on it (although it may be a lot harder to find a willing buyer). Just get in touch with your lender and close an arrangement with them first.
If your buyer is willing to shoulder your debt in exchange for your car, then they can pay your lender in your place, and your lender can hand over your vehicle title to your buyer, who will be its new owner.
Are These Loans Safe?
Car title loans are perfectly safe and legal.
Like a personal one, these short-term loans are just like the rest of the other secured loans out there. They all follow state laws and are regulated by the government.
So, in short, title loans are a QUICK, CONVENIENT, and EASY solution to any urgent or unexpected financial need. However, they are considered high-risk loans for a reason.
From the sky-high interest rate, expensive lender’s fees, the 30-day loan duration, and the risk of losing your car, carefully consider if this is the right solution for your current situation.
Remember that these loans are not long-term solutions but more of a band-aid one to an emergency.
So if you’re confident that you can pay back your debt by the time it is due (or better yet, before that day comes), then go ahead and get in touch with your lender today!