The Basics of Car Title Loans in Miami and State Laws

If you're facing a major expense without the cash to cover it, or you need money to cover checks about to bounce, pay credit cards or just get through the next few weeks, Miami car title loans may be the answer. These short-term secured loans are available to many people in the state of Florida and designed to help people with poor credit, who can't otherwise qualify for a loan.

While some people with great credit can simply get a loan from a bank, this isn't always an option. Even if you can qualify for a bank loan, what happens if you need the cash today? A bank certainly won't get you the cash same-day, and you may be left waiting for a week or longer. This is where car title loans differ. Miami lenders will get you the money you need, when you need it, regardless of your credit history.

Why Car Title Loans in Miami?

If you're curious about the advantages of car title loans, Miami lenders will be happy to explain the differences between this loan option and others, such as pawn loans. Basically, with car title loans, you can receive up to $15,000 same-day with no credit check required. You'll continue using your car and hand over your car's title until your loan is paid off. Rates tend to be much more affordable than many bad credit loan options and you can get up to 36 months to pay back the balance.

Laws Regarding Car Title Loans in Miami

There are many states and cities with laws governing car title loans; Miami is no different here. In Florida, title lenders can charge you up to 30% during your first 12 months on anything under $2,000, 24% if you borrow an amount between $2,000 and $3,000 and 18% per year for anything over $3,000. This means title loans can easily have interest rates lower than credit cards, pawn loans and other options. The faster you pay off your balance, the less you will pay in interest in the long run.

If you borrow just $1,000, you will pay about $300 in interest if you borrow the cash for a full year, but only $25 in interest charges if you pay off the balance in one month.

If you're thinking about Miami car title loans, be aware that you and your lender will need to sign a written contract that explains in detail the amount you are going to borrow, your interest rate and contact information for the Florida Department of Financial Services. This department regulates car title loans in Miami and they can advise you if you believe the lender is not behaving according to the law.

If your loan isn't paid back, the lender reserves the right to repossess your vehicle. In this case, they may sell it and keep the proceeds from the sale up to the amount you owe, along with reasonable expenses for towing and other costs. This is just like any other secured loan, such as a car loan or mortgage, and it's rare for lenders to repossess, as it's very expensive and they often lose money. Most will help you if you're having trouble by renegotiating the terms of your loan.

Qualifying for Miami Title Loans

Finally, the requirements for car title loans in Miami are as follows: you must be 18 years old or older and own your own vehicle with a clean title. The car shouldn't be more than 10 years old, and some lenders may give you a new loan if you have a few payments left on an existing title loan or car loan.

You can apply for Miami car title loans online, with a fast application process that takes about 5 minutes. From there, a representative will call you back and verify your information. They will determine how much they will lend you by considering your car's value, which takes into account year, make, model, condition and mileage. They will also schedule a convenient meeting place and time to deliver the money.

Car title loans in Miami can be an excellent option if you have bad credit and need money today. They often come with fairly low interest rates and they can save you money if you're facing late payment fees, bounced checks or not enough money to get through the next month.

4 Myths About Miami Car Title Loans

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.

Qualifying for Car Title Loans in Miami While Unemployed

You may be surprised to learn that it is possible to qualify for both payday loans and car title loans in Miami, even if you're out of work. Unfortunately, poor economic conditions have left millions of Americans struggling to pay back their debts, including car title loan and payday loan debt incurred while unemployed. You'll find many lenders are quick to offer you a fast cash solution to your financial problems, although you have to consider the cost. High interest rates and a loan that's due in just two to eight weeks can make it hard for you to catch up on bills or get ahead.

It's true that the economy is recovering, but unemployment rates remain high, particularly in Florida. Millions of Americans across the country are having trouble just paying for basic expenses like housing, food, gasoline and utilities, let alone debt payments. Traditional lenders won't be any help if you're unemployed or you have bad credit, as they will require good to excellent credit for a personal loan along with proof of steady and sufficient income.

That's where Miami car title loans come in. If you're having trouble making ends meet and you've lost your job, you can probably still qualify for car title loans. Miami has many lenders who provide these short-term loans to the unemployed, but you will need to use your car as collateral for your loan. The amount you can borrow is capped by the equity and value in your car, but you need to tread carefully to avoid biting off more than you can chew.

While you can get approved for car title loans in Miami despite being unemployed, you can easily put yourself in a troublesome situation. It's not uncommon for people getting payday loans to borrow just hundreds at a time, although those who are unemployed are often still making payments on a previous payday loan. This is also true with car title loans. Miami lenders will tell you that you can qualify for a lot more with a car title loan than a payday loan, but this larger loan amount may also be harder for you to pay off while you're out of a job.

This doesn't mean that car title loans are a bad option for you. Far from it! They are one of the few loan options available to consumers with bad credit, and you can quickly and easily get the money you need for the important things in life. Just remember that you need to be careful because you will risk losing your car if you can't pay off your loan. Your lender will have the right to repossess the car and then sell it at auction to recover what you owe.

If you can't afford the payments, you're setting yourself up for trouble and you'll end up paying off the loan for months or years, instead of the intended 1-3 months. 

The good news is most providers of Miami car title loans have no problem working with you if you're having trouble. You just need to contact them ahead of time! Of course, the best way to avoid running into issues is only borrowing what you can afford to pay back quickly. Because you can get quite a bit of money with title loans, avoid the temptation to borrow the maximum your lender will allow. Instead, borrow just what you need to get you through the month.

Personal Loan Options for Bad Credit in Houston

If you have bad credit, you know just how much it can limit you and affect nearly every aspect of your life. While you may get along without credit cards and access to a bank loan, what do you do when life throws the unexpected at you? Whether your car has broken down, your paycheck was shorter than you expected or you have medical bills to pay, you need a source of emergency cash.

Here are some personal loan options you can use in Houston if you have bad credit, including pawn loans and Houston car title loans.

1. Peer-to-Peer Lending

Peer-to-peer lending has gained in popularity over the years, and it allows you to obtain a personal loan without going through a bank. Your credit will still matter, however, but it's usually an individual who makes the decision, not a huge institution or underwriter. If you have bad credit, expect to receive a much higher interest rate. It may also take some time to actually receive the money, so it's not a good option if you need the cash in the next few days.

2. Houston Car Title Loans

Car title loans in Houston are available regardless of your credit history, and lenders will not run your credit at all. Still, you must own your own vehicle to qualify, or have few payments remaining on an existing car loan. The loan amount will be based on the equity in your car, which is determined in part by its year, make, model, mileage and condition. If you need cash today, this is one of the better options because you can have the money in as little as one hour. Depending on the value of your car, you can receive up to $15,000.

Be aware, though, that car title loans in Houston are secured. This means the lender will hold the title to your car until your loan is paid off. If you default on the loan, you will probably lose your vehicle.

3. Payday Loans

On the surface, payday loans are a lot like car title loans. Houston payday lenders will not check your credit, and you can get the cash in less than one hour. One difference, though, is payday loans are for a much smaller amount on average, usually just $500 to $1,000, and they're due within two weeks. This is because they are not secured like title loans, and lenders do not have much recourse if you default. This may be a good option if you need a relatively small amount of money soon and you do not own a car.

4. Pawn Loans

Finally, Houston has dozens of pawn shops who will loan you money based on the value of some collateral. You can pawn nearly anything you own for fast cash, whether it's a television, collectibles, an antique belonging or something else entirely, and the pawn broker will hold your item until you return to pay back the loan plus interest. Pawn loans, like all loans for bad credit, come with high interest rates, and you also risk losing the item if you cannot pay your loan back on time.

Options for Getting a Personal Loan with Bad Credit in Texas

When your credit is less-than-perfect, you know it can be really tough to get money when you need it. Banks won't lend you money if you don't have excellent credit, and you may find it impossible to even qualify for an unsecured credit card. Just because your credit is bad, though, doesn't mean life won't throw emergencies your way. What do you do when you need to fix your car, pay medical bills or cover the rent or mortgage?

These are just some ways to obtain a personal loan in Texas if your credit could use some work, including payday loans and Texas car title loans.

Pawn Loans

There are dozens of pawn loans in San Antonio, Dallas and Houston. Pawn shops will give you a loan based on the value of collateral you bring into the shop, and one advantage is you can pawn just about anything and get a loan in under an hour. The downside? The pawn shop will hold your item until you pay back your loan in full, on time and with interest, which is usually very high. If you can't pay back your loan on time, the pawn shop will sell your belonging to someone else to cover what you owe.

Texas Car Title Loans

Dallas car title loans are also available to you and do not require a credit check. You can qualify for car title loans in Texas as long as you own your own car, truck or motorcycle free and clear, or have just a few payments left on a car loan. The amount of money you receive is based on your car's year, make, model, mileage and condition and this is one of the best options if you need a lot of money in a hurry. Depending on your vehicle's value, you can receive up to $15,000.

Unlike pawn loans and payday loans, Dallas car title loans are secured. This means your car serves as collateral and, if you default, your vehicle will be repossessed and sold. One big advantage is you continue driving your car while you make payments and get your title returned when the loan is paid off, so you never have to give up your vehicle if you keep up with the loan payments.

Texas Payday Loans

Payday loans can seem a lot like car title loans in Texas on the surface, as both are available with no credit check and give you money in under an hour. Payday loans, though, are usually for a much smaller amount of money (often around $500) and they're due in two weeks. That's because payday loans are not secured so lenders must limit their risk. Payday loans may be a good option if you don't need a lot of money or you don't own a car.

Peer-to-Peer Lending

Finally, peer-to-peer lending may be an option to you. This allows you to get a personal loan from an individual, not a bank, but your credit will still matter and determine how much you can receive and what sort of interest you will pay. Expect to get a high interest rate, and remember it may take awhile to find someone willing to lend the money and even to receive it, as these are not same-day loans.

Ohio Lawmakers Eying New Laws Against Ohio Car Title Loans

In 2010, Ohio passed very restrictive laws against payday loans, claiming these high cost loans exploit the vulnerable and poor. According to many lawmakers, Ohio car title loans are just an attempt to operate in a loophole of Ohio's lending laws, loaning money to people under the same terms.

The legislation of 2010 enacted very strict rules on lenders, including a maximum interest of 28% on the APR and a minimum payback term of 31 days. This means payday lenders and lenders who provide Cincinnati car title loans must give you at least a month to pay back your balance, not merely two weeks. Still, lenders are able to use other laws in existence in the state to continue charging effective annual percentage rates over 350%.

While they may seem the same on the surface, Ohio car title loans have a few differences from payday loans. Title loans require the use of a car or vehicle's title as security instead of a paycheck. Borrowers also face having their vehicle repossessed if they can't pay the loan back on time.

While it's easy to vilify car title loans in Ohio, it's also important to remember that they are an important service for many people. Consumers in the state who have no savings and no or bad credit have virtually no other options when an emergency strikes and they need money. No traditional lender or bank will give a personal loan to someone with bad credit, and consumers who don't have money saved up will be placed in a very tough situation if their car breaks down, they need to feed their children or keep the electricity on.

When used responsibly, Cincinnati car title loans can even help consumers save money. Consider this example: you've written a few checks to pay the bills, then you realize you don't have nearly enough cash in your checking account to cover them. What happens when all of those checks clear? You will be facing bounced check fees from your bank of at least $30 each. If you obtain a car title loan for $500 to cover the checks, you're total cost for the loan may be less than $45 and you can pay back the balance on payday, potentially saving yourself over $100 in the process.

Title loans can also be used to avoid late payment fees on utilities and credit cards, as well as further damage to your credit if you miss a payment on the mortgage, student loans or a credit card.

While there are absolutely consequences to defaulting on a title loan, and borrowers should be very careful to borrow only what they need and can afford to repay quickly, this does not mean that the service itself should be outlawed. Doing so would only eliminate a much-needed source of emergency cash for thousands of people throughout Ohio.

How to Use Miami Car Title Loans Responsibly?

Unexpected issues or a big emergency can happen anytime, but it can be hard to recover from if your savings account is empty and you don't have any emergency credit sources available. In cases like this, there are options, regardless of your credit history. Miami car title loans may be the solution for you if you own your own motorcycle, car or truck outright and it has value. Title lenders will allow you to covert the equity into cash while allowing you to drive your car the entire time.

It's important to remember that these loans do have high interest rates and there is the risk that you will lose your vehicle if you default. That means it pays to do your research before you make a commitment and only borrow what you can afford to repay. Following is some advice you can use to prepare yourself before you sign that contract.

Shop Around!

Did you know there is no set interest rate or terms on car title loans in Miami? Two lenders may have vastly different interest rates and fees, so it's really important to get quotes from a few places before you settle on one. Don't just sign the first contract you're offered, because you may save yourself hundreds by simply checking another lender.

Borrow Only What You Need

This is one of the most important things you can do if you're considering car title loans. Miami has plenty of great lenders, many of whom may offer you more money than you asked for or need. Don't give in to temptation, as any extra money you borrow with Miami car title loans will also come with extra interest. It will also give you a higher balance with a higher minimum payment, which means you could be saddling yourself with more debt than you can afford to pay back. This means your loan will take longer to pay off and you may be setting yourself up for defaulting on the loan.

Clean Out Your Car

Remember, the amount of money the lender will give you is based on how much your car is worth. The easiest and cheapest way to boost your car's value is through a simple cleaning. Clean the interior and exterior of the car, remove any junk and get your car looking as good as possible to maximize its value and the amount of money the lender is willing to give you. This is especially important if your car isn't worth much and you need a certain amount of money to get through a tough situation.

Be Comfortable Before Signing

Finally, make sure you're comfortable before signing as you shop around for car title loans in Miami. If something doesn't feel right or you're worried you can't afford the loan, walk away! It's very easy to feel like you have no choice if you're dealing with a tough situation, but you will be putting yourself into something even worse if you sign a legal contract and give the lender recourse if you default if you aren't sure you can make the payments.