Does Having Bad Credit Prevent Floridians from Getting a Loan?

When looking for a loan, having good credit can be an important factor. Florida residents who have less than ideal credit or a score below the state average of 690 may have limited options when looking to access funds to take care of an urgent household expense.

However, limited options does not mean that there aren’t any loan options available. When looking for a bad credit loan option in Florida, applicants still have choices, including title loans serviced by LoanMart.1 Some loan providers in Florida care more about an applicant’s income or ability to offer collateral than their current credit score or credit profile. Keep reading to learn more about the bad credit loan options available in Florida and the pros and cons.

What Role Does Credit Play with Getting a Loan?

When applying for unsecured loans (which are not secured with an asset), a person’s credit history will generally play a big role for approval. Florida unsecured loans are available for customers with great, good, and excellent credit. While unsecured loans may be available for applicants with bad credit histories, they do tend to come at a high cost. That’s because with unsecured loans, lenders take on a large monetary risk if the applicant’s financial history shows prior late payments or loan defaults.

For many traditional unsecured loans, Florida lenders might have a minimum credit score to be eligible for funding. When there isn’t a minimum credit score requirement, then the interest rate will usually be higher to reflect the elevated lending risk.

Having bad credit doesn’t necessarily mean that a person won’t be able to get traditional funding, it just means that they may have to go through a few hoops, or explore options like applying with a co-applicant or guarantor.

Financial solutions for bad credit in Florida– exploring car title loan options for quick cash.

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What Loan Options Exist in Florida for Applicants with Low Credit?

For Florida residents with bad credit, there may still be several different loan options available.

Here are a few funding options to consider:

  • Title Loans – Title loans are a type of loan that is secured by the equity of the borrower’s car. These loans usually last about one to three years, but can be as short as a month. Most title loan options will let a borrower keep and drive their car while repaying the loan. Title loans can range anywhere from a few hundred dollars to a couple thousand – the maximum loan amount will largely depend on the value of the vehicle and the applicant’s income.
  • Payday Loans  – Payday loans, sometimes also called “deferred presentment” loans, are a type of loan that is primarily based on the borrower’s paycheck. In Florida, these loans are regulated by the Florida Office of Financial Regulation. According to the applicable Florida law, payday loans in the Sunshine State have a maximum loan amount of $500, and can last between 7 and 31 days. Some Florida payday loan providers may ask that the borrower provide a check for the repayment amount, which will be deposited on the agreed-upon repayment date. Besides setting a maximum loan amount and loan term, the Florida statues also set a maximum fee of 10% of the payday loan amount, and require that borrowers receive a grace period of 60 days if they’re not able to pay off the loan on the agreed-upon date.
  • Installment Cash Advance – Similar to a payday loan in Florida, an installment cash advance is a loan that’s primarily based on the borrower’s income. Compared to a short-term payday loan, Florida installment cash advances can come with a higher loan amount – up to $1,000 – and a loan term of 60-90 days, based on the current Florida statutes governing this type of loan.
  • Personal Loans – A personal loan can be used for a variety of personal or household reasons and come with different loan terms depending on the provider and applicant. When a personal loan is “secured,” it involves an asset as an added security measure. Personal loans may be available in Florida through banks, credit unions, or online platforms including peer-to-peer loan platforms.
  • Prepaid Credit Card – A prepaid credit card is exactly what it sounds like. A borrower must deposit a certain amount of funding in order to borrow. Some loans may allow a borrower to take out more money than they put in. Prepaid credit cards are generally used for building or improving credit, but may be a viable funding option for those with bad credit.
  • Home Equity Loans – Home equity loans involve the borrower’s home as an asset. Because the value of a home can be such a large amount, a borrower may be able to get a large amount of funding. Due to the high loan values, home equity loans tend to have longer repayment terms than other loans.

How To Improve Your Chance of Getting Approved

If being able to qualify for a loan despite having bad credit in Florida is on your mind, here are a few tips you can use to improve your chance of loan approval:

  • Choose a loan option and loan provider that aligns with your credit profile and financial profile
  • When applying, be sure to complete the application completely and accurately
  • Have documents ready to support the information stated on your loan application
  • Consider applying with a co-applicant who has better credit or a more stable or larger income

Reasons to Consider a LoanMart-Serviced Title Loan in Florida

When looking for a loan option with bad credit in Florida, a LoanMart-serviced title loan may be worth considering. Applying for a LoanMart-serviced loan can come with the following benefits:

  • Flexibility throughout the process – Title loans serviced by LoanMart offer flexibility with the title loan process. The inquiry process can be done entirely from home, repayment terms are built to be personalized, and getting the car title after repayment is simple.
  • Competitive interest rates – With title loans serviced by LoanMart, the interest rates are highly competitive compared to similar kinds of funding.
  • Credit bureau reporting – LoanMart-serviced loans are reported to a major credit bureau. Therefore, if you make loan payments on-time, your credit score might improve.

Whether you’re looking for fast cash in a major Florida city like Jacksonville, Miami or Tampa, or you’re in need of a quick funding solution in a smaller city like Fort Walton Beach, New Smyrna Beach or Jupiter, if you own a paid-off vehicle with a Florida title, applying for a LoanMart-serviced loan could be just a few clicks away.1