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Is it Risky to Get a Title Loan in Miami, Florida?

September 15, 2023

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No one wants to think about the prospect of facing a sudden emergency with a tight budget. Unforeseen circumstances are stressful enough, but finding your footing becomes particularly hard when you need to worry about basic needs while covering the costs of medical treatment, property damage, student debt, etc.

If you live in Miami, it won't be hard to find loan services in the area, with terms and conditions that change wildly from one company to the next. Car title loans represent one of these options, and they definitely stand out among those who don't have any time to waste. Like all loan options, however, car title loans are not infallible; there are factors that can still add to your stress levels if you don't have a clear plan going in. So, let's look at all the aspects of the process, addressing the things that could work against you under the wrong circumstances.

The Amount of The Loan is Based on The Car's Equity

What Are Car Title Loans and Why Are They So Popular?

Car title loan are based on the equity in a vehicle, with owners usually receiving the equivalent of 25% or 50% of that amount. After agreeing to the terms of the loan, the borrower gets the money in cash and the loan company keeps the vehicle's title until the loan and monthly interest are paid.

This is all discussed in a single visit after the vehicle is inspected to calculate the loan amount.

The process is quick for many reasons. For one, a car title loan can be arranged without reviewing too many documents, so most people already have everything they need from the start. Quick Cash Auto Loans only asks for your driver's license, social security card, vehicle title, registration, and two utility bills to verify your address.

Likewise, a client can get approved for a car title loan without having to go through any credit checks. People with bad credit are eligible for a car title loan as long as they have a clear title and a vehicle in good condition.

Florida's law strictly regulates car title loan services to protect the borrower's money and interests, helping a more transparent process to put potential clients at ease. Some of these laws involve allowing an extension on the loan agreement upon mutual consent from clients and lenders. Licensed loan companies in Florida are also obligated to notify clients about the potential repossession of a vehicle before the repayment deadline.

With that said, let's address the problems that could arise if all plans fail and you find yourself unable to pay the loan.

Are There Risks to Getting a Car Title Loan?

Car title loans greatly minimize the possibility of financial debt, but multiple factors can still lead to a stressful situation. It's still easy to get indebted if you roll over into a new loan because the initial fees will also add to the owed amount.

With the majority of loan options, high interest rates are the main cause of debt. Car title loans are known for offering competitive monthly rates, but the amounts demanded by some companies in Florida get pretty close to what you'd get with a payday loan, especially when calculating the annualized interest rate (APR). Some companies ask for as much as 25% per month.

Of course, the biggest risk comes with the possibility of having your vehicle repossessed by the company if you fail to complete your payments. That's why you shouldn't rush through the process before signing the loan agreement. A certified Miami loan company will expand on multiple payment options and list the available loan terms depending on how much money you're allowed to borrow after the vehicle inspection.

Car Title Loans Don't Build Credit Score
While not a risk, per se, it's important to mention that car title loans won't actively build your credit. The lack of credit checks is a huge relief for people with bad credit scores, but it also means that borrowers can't report their loan payments to the credit bureaus. On the bright side, a car title loan can provide the respite you need while overcoming a financial crisis, helping you cover the costs without altering your credit score in any way.

Getting a Title Loan in Miami, Florida

Quick Cash Auto Loans provides all the options to ensure a smooth process, not only during your appointment with our specialists but also throughout of the repayment period. We help our clients set a payment schedule that works for them and we count on a secure online payment system to save you time.

Don't be afraid to ask about your payment options, and our loan specialists will be happy to help you get monthly rates as low as 1.50%. We will give you all the information you need so you always know what to expect. This work ethic has allowed us to maintain our clients' trust for decades as we bring our services to more people in Florida.

Quick Cash Auto Loans is a consumer finance company licensed under statute 516. We have all the necessary credentials and a growing reputation to boot; your vehicle and private information are in good hands. You can count on us to provide the best customer service while keeping your best interest in mind at all times.

Contact Quick Cash Auto Loans and let us surprise you with a smooth, straightforward process that's tailored just for you. The endless paperwork of traditional loan options will become a thing of the past. Remember, you can call (786) 600-3411 or fill out the application form at the top of the page. Our specialists will answer all your questions, and you can get approved for a car title loan in no time!

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