While title loans are one of the most popular short-term lending products on the market, many borrowers may not know exactly what a title loan is or how it can solve their financial problems. Before submitting a loan application, keep in mind a few key points about what title loans are and how they work:
Title loan applications are quite a bit different from their counterparts at major banks. Instead of endless pages of personal information and several different credit checks, title loans depend almost entirely on the value of a borrower’s fully owned vehicle. To that end, the first section of the application requires basic contact information, like a borrower’s name, address, zip code, and phone number.
The second part of the application, which is even more important, focuses on vehicle information and valuation. To that end, borrowers should be ready to provide the following key details about the vehicle that they own:
Additionally, borrowers must verify that they currently hold the vehicle’s title. That title must indicate that there are no other lien holders who are currently using the vehicle as collateral for another type of loan, whether it’s a title loan or vehicle financing company. Once you enter this information your title loan estimate will automatically be given to you.
Florida regulators have enacted two provisions that provide oversight of title loan companies. First, borrowers should know that they’re entitled to a written loan agreement before agreeing to the loan and receiving funds. This agreement must include the loan balance, repayment schedule, effective interest rate, and details about what may happen if payments are not made on time.
A second regulation requires that a loan provider be licensed in the state of Florida. Companies without this key license are not authorized to offer title loans or any other kind of short-term lending option.
It’s not uncommon for Panama City residents to struggle to make ends meet. Title loans provide several benefits over longer-term lending products that can help pay bills, keep the lights on, and cover emergency expenses that are hard to fit into a budget. Among the biggest benefits of title loans:
With benefits like these, title loans may make sense for many customers in Panama City, or Tallahassee, Florida who are suffering a short-term financial hardship. With an easy application and short-term repayment, moving beyond financial stress can be much easier.