Loans are the most practical solution for most people when they are facing financial struggles. The availability of different loan products offers alternatives for every type of customer. Auto title loans are designed for the individual with an urgent demand for cash. If you have never taken out a title loan, it works by surrendering the title of your vehicle for a certain amount of money. Title loan lenders in Daytona, Florida are popular among borrowers because they offer short-term financial solutions. When you have overdue bills, emergency medical treatments, or pending mortgage payments, a short-term loan allows you to attend to the problem immediately.
Title loans Dayton Florida come with a duration of 30-60 days, and therefore, a borrower must have a plan of making payments before applying. The amount due on the agreed date is the principal plus the interest incurred during that time. Another reason these products have become top choices for quick cash is the lack of credit checks by lenders. A majority of borrowers are not eligible for traditional loans because their credit scores are not good enough or have spotty credit histories. For this reason, more people have access to Daytona auto title loans.
The simple application process involved in title loan lending explains why they are preferable during emergencies. For one, the process is online, so you don’t have to fret over finding a physical location to submit your documents. Customers have to fill a form on our application page that only takes a few minutes. We request the particulars of your vehicle that is the type, approximate mileage, year, make, and model.
Borrowers also have to submit personal details, which includes the full name, email address, zip code, and phone number. We use your car’s information to work up an estimate of your loan, so you are aware of what to expect before the approval process is even complete. Because with online title loans no credit check is necessary, approval takes a day or less.
The Florida Title Loan Act is responsible for governing this industry, and it offers various protections for consumers. Some caps apply to title loans Daytona as per the provisions of the lending Act. The maximum interest rate for the first $2,000 is 30% APR, 24% for loans amounts between $2,000-$3,000, while loans over $3,000 have a limit of 18% APR.
The law also requires lenders to have an agreement in writing with their customers, which is another measure of consumer protection. Borrowers should understand that a title loan is a legally binding contract and as such, should contain all the relevant information such as;
• The details of the asset used as security (make, model, mileage of the car)
• Personal information – name, address, social security number
• Type of ID provided to the lender
• Amount financed
• Total of all payments (principal, interest and any finance charges)
• Date of maturity
• Date of Signing the Agreement
Loans come in two kinds, secured and unsecured. An unsecured loan is one where the lending institution doesn’t require an asset to hold as collateral. The borrower’s promise to pay is the only guarantee that a lender has. For this reason, unsecured loans are usually in small amounts because the lender carries all the risk. Student and personal loans fall into this category.
Secured loans, on the other hand, require the borrower to provide collateral, which can be anything from a home to a car. The value of the asset determines the size of loan a borrower can receive. Title loans are types of secured loans because the lender puts a lien on your vehicle’s title. Contact us for title loans Daytona that offer flexible repayment terms and painless approval.