Title loans, which use the borrower’s vehicle as collateral, are a short-term financial solution when money is tight. It’s important to borrow only from one of Florida’s properly licensed lenders offering clear terms. ConsumerAffairs researched the best title loan companies in Tampa so you can use your car to get access to cash.
Title loans are different from payday loans, which are unsecured and only allow you to get up to $500 in Florida. With a title loan in Tampa, you are able to borrow thousands of dollars by offering your vehicle as collateral. The lender keeps the title as a security guarantee for the term of the loan, 30 days.
Title loans are expensive but not as costly as payday loans. Florida limits the amounts lenders can charge.
Annualized interest rate
Additional money between $2,000 and $3,000
Any money above $3,000
As an example, if you borrow $1,000 over a 30-day period, at the end of a month you will owe the $1,000 plus $25 in interest. For $2,500 borrowed, after 30 days you would owe $2,500 plus $60.
Depending on the title loan company in Tampa, you may apply online or in person. You don’t need to have good credit. Have these items ready:
Government-issued photo ID
Clear title to the vehicle
Proof of insurance
Proof of income
Proof of residency
If you qualify for a title loan, the lender will take the title and may ask for a second set of keys. The title is returned to the borrower after the loan is repaid.
Before signing for a title loan in Tampa, carefully read over all terms, which must be disclosed in accordance with the federal Truth in Lending Act. You will see both the finance charge (in a dollar amount) and the annual percentage rate. Check for any other fees.
Recognize that if you are unable to pay back a title loan, you are at risk of losing your car. By agreement, the lender and borrower are allowed to extend the loan for additional 30-day periods.
Finova Financial, founded in 2015, offers title loans in a handful of U.S. states, including Florida. This company makes quick lending decisions, provides same-day cash and charges no prepayment penalty. Tampa vehicle owners can apply online or over the phone; good credit is not necessary. Many Florida borrowers give five-star reviews, recommending Finova Financial to others.