Title Loans in Gibsonton FL

If you're wondering what to do about some upcoming expenses, you should know that title loans might be able to help you. Those who have temporary trouble meeting expenses can rely on this convenient financial product to make ends meet and to get back in shape financially.

A title loan relies on the fact that a consumer owns a vehicle to provide him or her with short term financing. The product is easy to understand and can prove to be an invaluable lifeline in times when consumers are short on cash.

Title loans in Gibsonton FL: How they work

To get started, individuals should first familiarize themselves with the basic workings of this type of alternative lending product. This is considered an alternative lending product because it offers some distinctions and distinct advantages over some other types of loan. For instance, this type of loan focuses less on credits core and more on vehicle ownership.

Those who want to pursue title loans in Gibsonton FL will need to submit and application. This application can be accessed online and will provide all the majorly important details the lender needs in order to decide if the applicant qualifies. While some of the entries on this loan application are similar to those of a traditional loan application, a title loan application will also ask for details about the vehicle that the applicant owns and will be providing as collateral on the loan.

The following are the three keys details about the vehicle that will be requested in the application:

  • The manufacturer of the vehicle
  • The model of the vehicle
  • The age and mileage of the vehicle

After the application is complete, the prospective borrower submits it and waits for a response. If a loan is offered, the borrower needs to realize that he or she must give the title of the vehicle to the lender in order to get the loan money. When the loan is paid off, the borrower will get his or her title back.

Understanding laws in your state impacting title loans in Gibsonton FL

States regulate the title loan industry independently. In Florida, borrowers need to be aware of the following three regulations on this type of loan in the state:

  • The loan amount- The loan amount on this type of loan is typically limited to $500. This limit does not include any fees that the borrower must pay as part of the loan agreement.
  • The loan term- The loan term on title loans Tampa cannot be any longer than 31 days. Florida borrowers ideally pay off their loans quickly to get back on track financially as soon as possible.
  • The interest cap- The state of Florida puts a limit on interest rates to minimize the expense of borrowing for state residents. There is a maximum limit of 30 percent on title loans in the state.

Keeping in mind the benefits

There are certain benefits that borrowers of title loans in Gibsonton FL can enjoy. Title loans are a unique type of loan product with some distinguishing characteristics. For example, borrowers should keep the following in mind:

  • These loans are not payday loans. They do not require the borrower to sign over his or her paycheck.
  • It's possible for a borrower to be approved even if there is a lien on the vehicle title. If the borrower has enough equity, he or she can still use the vehicle as collateral for title loans in Gibsonton FL.