Title Loans in Jacksonville, FL
Title Loans in Florida are a great way to get extra cash for any situation. We serve the entire state of Florida with car title loans. Fill out the application or give us a call today to get started
What is a Title Loan?
Title Loans are secured loan where the borrower uses their vehicle’s title as collateral. A borrower who gets title loans in Jacksonville FL must let the lender put a lien on their car title and surrender a copy of the original title to the lender in exchange for the loan. After the loan is paid by the borrower, the lien is lifted and the title is returned to the owner. If the borrower defaults on their loan payments the lender has the right to repossess the automobile and sell it to cover the outstanding debt of the borrow.
If you’re a resident of Jacksonville and own your own car, a title loan may be just want you need to get back on your feet financially.
Title loans are usually a short-term loan and they usually have higher interest rates than other types of loans. However, title loans are usually much easier to get because they are backed by collateral rather than the good faith of the borrower. Lenders usually don’t check an applicant’s credit history for these types of loans. They usually only consider how much the vehicle is worth and its condition based on the title loan estimate and inspection. Lenders argue that the higher rates are necessary because of the increased risk of defaulting on a title loan because the borrowers of these types of loans are usually undergoing financial difficulties already.
Most titles loans are easy to get and can be secured very fast. Titles loans in Jacksonville FL can usually be acquired in less than 15 minutes and the loan amounts can be as small as $100. Banks and other financial institutions do not offer under $1,000 to a prospective borrower who they don’t consider worthy because they deem these customers as risky and unprofitable. A lender will also verify that you are employed or have a stable source of income. Lenders usually don’t consider the credit score of a borrower when they are making a lending decision.
Title Loan History
Title loans first appeared in the early ‘90s and gave a new group of people with poor credit access to lending. Title loans are similar to payday loans but with a title loan a car is offered as collateral. Since the borrower is offering their car as collateral, the borrower is risking their car if they default on their payments. Title loans usually have higher interest rates and the APRs of title loans are usually in the triple digits. They are sometimes known as “balloon payments”.
Alternatives to title loans exist in many different states. These are known as auto pawn or car title pawn. Similar to a car title loan, car title pawn requires both the car’s title and the vehicle itself to be offered as collateral to secure the loan. Just like any other secured loan, there are risks involved. However, lenders usually let consumers borrow more money when issuing a title loan because the lender gets both the title and the physical vehicle form the borrower.
Jacksonville Title Loan Calculation
The amount of money that a borrower can be lent depends on the value of their vehicle. A lender will usually look up the car’s auction value and offer a value that falls in the range of 30% – 50% of the vehicle’s worth. This gives the lender room to make a profit on the transaction in case they need to repossess the automobile and sell it at an auction, in case the borrower defaults.
With car title loans Orlando, Tampa, Miami, and more, we have you covered wherever you are. Jacksonville FL title loans are a great option for those that are in a financial emergency and need some extra cash. Sometimes you just need a couple thousand dollars to make ends meet. Apply for your Jacksonville title loan today!