Who is Involved in Car Title Loaning?
Car title loans can be very helpful in the right situation. Is your situation the one? If you find yourself short on money, but needing to pay major bills, a car title loan may be right for you. However, before you sign up for one, understand the advantages and disadvantages first, because there are big consequences to defaulting on the loan. These loans can help you in the short-term, but harm you in the long run if you are not clear about what they require.
Agreeing to a car title loan uses the title of ownership for your vehicle as collateral for an influx of cash. Once you are approved for this loan, the lender will take the title of ownership and provide you with the necessary cash. You will not receive the title until the loan is paid back in full with interest. A lien is also placed on your vehicle while the loan remains unpaid. If you are not able to pay back the loan as detailed by the loan agreement, your car becomes the property of the lender. In other words, if you cannot pay back the loan, you will lose your car, so it's important to understand the demands of the loan and be able to meet them with relative ease.
Generally speaking, Florida is a state built for cars. For many, it's almost impossible to live without a car, and if you agree to a car title loan, the consequence is losing your car. If the intention of the loan was to pay your rent, but you can't pay back the loan, losing your car may further hurt your ability to pay rent when it becomes difficult to get to work. Car title loans often come with high interest rates and short periods in which you can pay them back. Be very clear about whether or not you can pay back the loan as written in the agreement, before you sign anything. So, if you need a quick injection of cash to hold you over before you receive a pay check or other injection of cash, then a car title loan is a great choice, if not, you may want to consider other avenues for receiving a short-term loan, like asking friends or family.