Auto title loans in Sunny Isles Beach are subprime loans given to borrowers with bad credit who use their auto equity as collateral, allowing consumers to borrow money based on the value of their vehicle.
When you apply for a Title Loans, you’ll have to show proof that you hold the title of your vehicle in Sunny Isles Beach. It is important that your vehicle has a clear title and that your car loan is paid off or nearly paid off. The debt is secured by the auto title or pink slip, and the vehicle can be repossessed if you default on the loan.
Some lenders may also require proof of income and/or conduct a credit check, bad credit does not disqualify you from getting approved. Auto title loans are typically considered subprime because they cater primarily to people with bad credit and/or low income, and they usually charge higher interest rates than conventional bank loans.
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Title Loans - What is a Secured Loan? Try Car Title Loans
Are you suffering with a leaky roof because you don't have the cash or the credit required to repair it? It can cost a homeowner from hundreds to thousands of dollars to repair and replace a roof or any other major structural defect. But if you have a clear car title, you don't have to suffer interminably. Secured debt instruments such as a title loans can give you the cash you need in times of emergency.
Car title loans are designed for subprime borrowers with a bad credit score. All you need is a clear pink slip and you can get a large sum of cash in a few hours. You can use the title as collateral to get a quick loan for emergency home and roof repairs.
If you have bad credit, you know how hard it is to find a lender who will give you a low-interest loan. For homeowners who need funds for emergency repairs, it can be a blessing because the loan is secured, so interest rates are less than for unsecured debt.
A leaky roof is an emergency for most homeowners. Most roofs require repairs over time and if not take care of, leaks can get worse leading to property damage worth thousands of dollars. Repairing a roof is a large expense for most homeowners and, unless you have a little cash set aside for a rainy day, that cost is going to take a large bite out of your family's budget.
If you're lucky and your roof requires only minor repairs, you won't need more than a few hundred dollars to repair the roof. The cost will depend on the size of your home, materials used, the contractor you hire, and the area you live in. It ranges anywhere from $2,000 to $10,000 depending on all these factors. If you use materials such as asphalt or shake, the costs can spiral to even $25,000.
Roof repair financing options are available for most situations. You can choose the one best suited for your situation from those below:
* Ask your contractor to work out a payment plan. Although some contractors want their money upfront, most will want to keep a client and may be willing to offer you flexible payment terms for your roofing contract.
* Use your credit card. If you haven't maxed out your cards, you can use one of them to fund your roof repairs.
* Get a home equity loan. For homeowners with equity in their home, this may be a good option to finance roof repairs or maintenance.
* Get a personal or home improvement loan. If your credit score is still acceptable, you can approach conventional lenders and banks for funds without having to put up collateral and the interest rates you pay will be much lower.
* Apply for a car title loan. This option is suitable for those who have bad credit, but have auto equity and can therefore provide collateral in order to secure the debt. For borrowers with bad credit, a car title loan can help you get emergency repairs done. This will help you prevent further damage to your home and property without having to approach a bank or loan shark for cash.
As long as you have proof of ownership of your vehicle and possess the documents to show that it is paid off or nearly paid off, lenders will be happy to give you cash against your car title. However, as title loans are given to subprime borrowers, you must be prepared to pay a higher interest rate than with traditional lending sources.
You can borrow up to 50 percent of the car's wholesale value with these instruments. And if you strictly adhere to the terms of the agreement and make your payments on time, it will help you establish a positive payment record and boost your credit score.
Once you reestablish credit and have a good credit score, you can turn to conventional lenders for a loan with lower interest rates. Because subprime borrowers are vulnerable to disreputable lenders, you must be especially careful to read the terms of your title loan agreement carefully.
Beware of lenders who use aggressive selling tactics and make sure that you are not being charged exorbitant interest rates that will trap you further into debt ending up with your vehicle getting repossessed. Look for a lender that offers reasonable interest rates and allows convenient and flexible terms so you can avoid repossession.
You need some cash, but you aren’t sure where to get it. In your research, you’ve come across different kinds of loans and options for fast cash. There are Title Loans, home equity, secured loans and unsecured loans. There are so many kinds; it can be very confusing to keep them all straight. So what kind of loan sounds like the best deal for you?
Who Has the Best Title Loan Rates?
How is this a good investment for both the borrower and the title loan company? It is an excellent investment for the borrower. This is why: at this point of time, let's assume the borrower is in some kind of financial disposition. That means the borrower may have lost their job, can't afford to pay their rent, may need money for their child's school tuition; there could be a number of possibilities why the borrower is in search for instant cash. Depending on the borrower's vehicle value, the borrower can receive up to whatever the maximum the loan company may offer. Some loan companies offer up to $100,000 and others may offer lower loans of up to $5,000. Obviously if the borrower is driving a Mercedes or BMW they will be looking at a larger loan value, but every title loan company is different.
Let's look at the other side of the spectrum. How is this a good investment for the loan company? If we scroll back to the first few sentences in this article, we can see that the title loan company "uses the borrower's vehicle title as collateral during the loan process". What does this mean? This means that the borrower has handed over their vehicle title (document of ownership of the vehicle) to the title loan company. During the loan process, the title loan company collects interest. Again, all companies are different. Some companies use high interest rates, and other companies use low interest rates. Of course nobody would want high interest rates, but the loan companies that may use these high interest rates, probably also give more incentives to the borrowers. What are the incentives? It depends on the company, but it could mean an extended loan repayment process of up to "x" amount of months/years. It could mean the loan company is more lenient on the amount of money finalized in the loan.
Back to why this is a good investment for a title loan company (for all the people who read this and may want to begin their own title companies). If by the end of the loan repayment process, the borrower cannot come up with the money, and the company has been very lenient with multiple loan extensions. The company legally receives the collateral of the borrower's vehicle title. Meaning the company receives ownership of their vehicle. The company can either sell the vehicle or turn it over to collections. So are car title loan companies a scam? Absolutely, NOT. The borrower just has to be careful with their own personal finances. They must know that they have to treat the loan like their monthly rent. A borrower can also pay-off their loan as well. There are no restrictions on paying a loan. He or she could choose to pay it monthly, or pay it off all in a lump-sum. Just like every situation, the sooner the better.
Car Title Loans: The Pros and Cons
It is very helpful to analyze the pros and cons of a car title loan before you decide to take a loan out. Learning about your financial investment before you finalize anything is a great financial tool to success. A borrower must consider their options fully before making a decision.
If you go online to most car title loan companies and read their "about us", "apply-now", "FAQ" pages you will see how bias their information really is. This is called false marketing. Just like the terminology "false advertising" most of these companies never state the entire truth about their company. They may hire outsourced journalists and columnists to write their content. Read the content before you make your final decision. If the content is cheesy and uses imagery in their content, the company is probably bullshit. Writing jargon in articles, is not something to brag about, but come on? Really? This is 100% needed! An example of poor imagery content may be: "Tired of thunderstorms and rainy days, get a car title loan today, and turn your day into a bright-sun shiny day". The content shouldn't be a story, if the borrowers really wanted to read a story, they could take their "nooks" out and read an article from "Reader's Digest". The content should be straight to the point, to get the borrowers' to want to receive a loan from the car title loan company.
The Pros of Car Title Loans
The most clear-stated pro would be the advantage of receiving instant cash. Anyone could walk into their local 7-11 or convenient store and purchase a state lottery ticket. That process is extremely easy; however the probability of receiving a large amount of cash instantly is extremely low. The probability of receiving instant cash at your local auto loan company is extremely high. Unlike traditional banks, and credit bureaus, another advantage of the car title loan industry is NO CREDIT CHECKS. Most of the time, borrowers come to tile loan companies because they're stuck in financial situations. Their credits scores are usually poor at this point, after collections have had to continuously made adjustments because they couldn't pay their bills on time. That is a major "Pro" for a car loan company. No matter what the borrower's credit score may be, the borrower is still qualified to receive a car title loan. Another pro of the car title loan industry (which was actually mentioned previously in the article) is since the borrower is putting their car loan as collateral, it is easy to convince the lender to extend the loan to you.
How does a borrower qualify? Like stated before, there is NO CREDIT CHECKS, therefore the borrower is already pre-qualified for a loan at this point. However, the borrower must meet the following requirements to receive a car title loan. The borrower must be over the age of 18 years old, the borrower must be the owner of their vehicle title, they must have already paid off their vehicle liens-free, and they must have a valid driver's license or state identification card.
How long does the application process take? The simplicity and speediness of the application process is another "pro" or advantage for the car title loan. The average online application just asks basic personal questions pertaining to the borrower's vehicle, and location. The application roughly takes about a minute or less to complete. Most companies get back to the borrower within a few minutes of submitting an application. Once the loan representatives read through the borrower's application information, they quickly give the borrower a call based on the number provided in the app, and go over the details and process of obtaining a loan.
How long does it take to receive the loan? Every company depends and probably has a different loan process, but it usually takes within 24 hours or less to receive the "instant cash". That is another advantage, or "pro" of the loan industry. Traditional banks, and credit bureaus, can take up to a few weeks to finalize the loans. By that time, the borrowers would have already lost their homes, been in serious debt, etc. Taking out a car title loan is the best financial choice. Check.
The Cons of Car Title Loans
Now that we looked at the Pros, let's look at the Cons of car title loans. Honestly, no financial decision is 100% perfect. Nothing is perfect, but some things get close. If this article was based on telling the reader that the car loan industry is the best financial choice, then the article would be full of shit. That's why the title is "key-worded" "Choosing the 'RIGHT' financial service. Not the BEST. The "Right" financial service. Remember, nothing ever is perfect, especially in finances, but some things come close.
The cons of a car title loan are indeed straightforward. The borrower is basically handing the ownership of their personal transportation over to the car loan company as collateral in order to receive a cash loan. As stated before, the borrower can face extremely high interest rates- depending on the company. If you have poor to no credit because of your financial situation, and learn that you cannot pay-off the loan you will be stripped of your vehicle, and instead of being able to alleviate your debt, you will fall into even more debt. At this point, the collections agencies will be completely done with you. The saying "follow the directions, and it'll turn out right" is extremely important and accurate when obtaining a car title loan. A borrower may also be at risk of taking out a loan from a disreputable company that will charge extra fees on top of the accrued interest, or instant hidden feeds that were written in the fine print in the contracts, that are almost impossible to see, unless observed carefully with a magnified glass. Thus, a borrower must be careful before making a finalized decision in any financial situation, especially when their biggest ticket possession is being used as collateral.
Now that this article has closely examined the Pros and Cons of the car loan industry, it is up to the borrower to make the right financial decision. The final decision is the hardest part. The final step is always the hardest part because the borrower now has to make a final decision whether he or she wants to take out a car title loan or choose to use another financial recourse. Honestly, after everything stated in this article, it would seem to be that choosing a car title loan is the right financial service. Again, banks and credit bureaus take too long to process a loan, so why choose them? If the borrower is in need of fast cash, they might want to consider choosing a car title loan.