According to Miami title loan provider, many consumers in Florida carry a range of misconceptions about title loans, which may hold back some people in need from obtaining an emergency loan when they need it. The lender went through a list of common misconceptions surrounding the industry.
1. Borrowers do not keep their car
According to Sunshine Lending, one of the most common myths they encounter is that borrowers are not able to keep their vehicle. Title loans are secured loans, but the lender only retains the title and puts a legal lien on the vehicle. The borrower continues driving their car as long as they make agreed-upon payments and the title is returned after full repayment of the loan.
2. There are restrictions on how the loan may be used
Lenders do not place any restrictions on how the money may be used, unlike traditional lenders. According to Sunshine Lending, car title loan providers do not ask about how the money will be used.
3. Loans must by paid off in 30 days
It is not true that borrowers must repay their loan within 30 days. As Sunshine Lending explains, borrowers receive between $500 and $15,000 based on their vehicle's value, and borrowers have up to three years to repay the balance with monthly payments arranged to meet the consumer's budget. Paying off the loan early is encouraged to reduce interest charges, however, and there are no prepayment penalties.
4. Title loans are expensive and take advantage of consumers
Title loans come with a great deal of risk to lenders, as there are no credit checks and the cost to repossess and sell a vehicle usually leaves a balance still owed. As Sunshine Lending puts it, these loans fill a need for people who cannot qualify for bank loans so they do have higher interest rates, but many are surprised to learn the interest can actually be lower than that of a credit card.
Sunshine Lending has one of the lowest APRs in the state of Florida with car title loans available at 1.5% APR per month. The company offers online car title loans to Miami residents, who can apply online.
Car Title Loans serves all of Florida and specializes in online title loans. They offer a fast application process that may be completed online, with a follow-up phone call for verification and a meeting with a mobile loan agent at a convenient location to deliver the cash same-day. Car Title Loan has four locations, including locations in Miami, Orlando and Tampa, Florida.
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