Title Loans in Second Lien Title Loans, FL
A title loan allows you to use your vehicle as collateral to borrow money without a credit check. These loans can be beneficial to those who need thousands of dollars quickly to start a business, take a vacation or pay a past due debt. In most cases, lenders will require that you have either fully paid for the car or be reasonably close to doing so. However, some lenders will allow you to get what is called a second lien title loan.
What Is a Vehicle Title?
The title is a document that you receive when taking ownership of a car or truck. If the car was purchased with money borrowed from a bank or credit union, that financial institution will put a lien on the title. This gives the lender the right to repossess the car or truck if you fail to make payments as agreed. When you take out an auto title loan, the auto title company will put a lien on the vehicle as well to protect its interests.
An Overview of the Vehicle Title Loan Process
When you apply for a vehicle title loan, you will provide basic information about yourself and your vehicle to the lender. Generally, a loan officer will want to know that you have some sort of income to repay any proceeds that you receive. Whoever makes the decision about your loan application will need to know as much as possible about your car or truck to determine its value. This is important because the value of the vehicle will determine how much you can borrow. From there, a loan decision will be made with funds reaching your bank account in hours or days.
An Extra Step Is Involved With Second Lien Title Loans
With a second lien title loan, the lender will either pay off the current lienholder or hold back an amount equal to what it is currently owed. This means that the title loan company will either hold the lien or have the resources available to pay off another party if necessary. Either way, that amount is usually deducted from the loan amount. Let’s say that you had a balance of $3,000 on your current car loan. If you were approved to receive $10,000 from a title lender, you would only actually see $7,000 in your bank account.
How Do You Apply for Title Loans?
Applying for Tallahassee online title loans is a breeze. Assuming that you have the necessary information handy, you can complete the application in a matter of minutes from wherever you happen to be. You can submit your application via smartphone or tablet as well as from any standard laptop or desktop computer. If you have any questions about how the loan process works, feel free to start a live chat session or talk with a customer service representative by phone.
What Is the Repayment Term?
On a typical title loan, you have 30 days to pay off the balance in full. Extended repayment periods may be available depending on how much you borrow and your past history with a lender. It may also be possible to rollover the existing loan into a new one if you anticipate problems paying it off on time.
What Happens After the Loan Is Repaid?
When the loan balance has been paid in full, you will receive the title to your vehicle back. Since the original lien has already been taken care of, you now have 100 percent ownership of the car or truck used to secure the loan. If you want, the title can be used to secure another loan based on its current market value.
Will I Need to Buy Special Insurance?
As long as there is adequate existing coverage on the vehicle, you won’t have to buy any additional insurance. However, if you don’t normally carry generally liability or other types of auto coverage, a lender will likely ask that you purchase a policy as a condition of loan approval. The policy can be cancelled or allowed to lapse once the money has been repaid.
Whether you have paid off your vehicle or not, title loans may be a way to access large sums of money. If you have questions about second lien title loans or about the application process, a customer service representative will be happy to answer them.