How Does a Title Loan Work?
An auto title loan is a type of secured lending that uses the borrower’s vehicle as collateral for the loan. Title loans are installment loans that can offer more flexibility than other alternative loans. In order for your vehicle to qualify as collateral, however, your car will need to have a certain amount of equity.
Generally, title loans are an efficient way to receive emergency funding if you are insecure about your credit history, as they can be more flexible in terms of loan approval and loan terms. Due to the competitive rates and ease of the loan, borrowers from all different types of financial backgrounds may be approved.1
If you prefer to talk to a qualified loan specialist, you can call now at 855-547-9951
What is a Lien on a Car Title?
Simply put, a lien is the legal right to an asset.
When a lien is put on a vehicle title, it can mean a couple different things:
- The lender becomes your lienholder.
- The lien will exist until the loan has been paid in full.
- Once the loan has been paid off, the lien is removed and the title is returned to you.
Can I Keep My Car if I Get a Title Loan?
Even though you are using the title of your vehicle to secure the loan, you do not need to give up your car in Miami, Florida! Borrowers can continue to drive their vehicle as they normally would during the repayment process for the title loan. There is no need to rely on ridesharing apps to get where you need to be!
How Does a Title Loan Affect Your Credit in Miami, Florida?
Your credit is important to your financial situation, as it can determine life changing factors like where you live and what car you drive. A concern you may have is if taking out a title loan will affect your credit.
During the title loan process in Miami, Florida, there are two different credit checks you could be subject to:
- Soft Credit Check: Once you have submitted your initial loan inquiry form, a lender may put your credit through a soft credit check which does not affect your credit.
- Hard Credit Check: Once you have gone through all the paperwork, your credit will go through a hard credit check. While this can affect your score, paying your title loan back in a timely matter can potentially reflect positively on your score.
Required Documents for Title Loans serviced by LoanMart in Miami, Florida
For most loans, alternative or not, there are a few documents that will be required. A borrower will need to submit the following to a lender in order to be deemed eligible for a title loan serviced by LoanMart.1
While the exact documents may vary from state to state, residents in Miami, Florida will typically need to have the following documents:
- Photos of Your Vehicle: All four sides of your car as well as the VIN and odometer.
- A Valid Government-Issued Photo ID: This could be a state ID, or passport.
- Proof of Residence: A rental lease, home title, cellphone bill, or utility bill.
- Your Vehicle Title: The title must be in your name. The car you intend to use as collateral must have some value in order to be eligible for a loan.
- Four References: These can be personal, professional, or both.
- Proof of Income: These can be recent pay stubs, pension documentation, Social Security Administration account statements, etc. If you do not have traditional forms of income, alternative forms like benefits may be acceptable as proof of income.
If you would like to talk to a qualified loan specialist to discuss your financial options now, feel free to call at 855-547-9951