If you live in Florida and plan to get a title loan, then Florida title loan interest rates are something you definitely need to know about. The interest rate on any loan is what the lender charges you to borrow that money, which means it has a significant impact on how much you end up paying for your loan.
Here's all the info you need on Florida title loan interest rates, including what the maximums are and how that compares with the maximums for title loans in other states.
How Much Are Interest Rates on Florida Title Loans?
Florida sets different maximums for title loan interest rates depending on the amount that is borrowed. Here are the three amount ranges Florida uses and their corresponding interest rate maximums:
- When a title loan is $2,000 or less, the maximum interest rate is 30 percent.
- When a title loan is more than $2,000 up to $3,000, the maximum interest rate is 24 percent.
- When a title loan is more than $3,000 the maximum interest rate is 18 percent.
Those are all annual interest rate maximums, meaning to get the monthly rate, you'd need to divide them by 12.
As you can see, you get a better deal in terms of interest when you borrow a higher amount. This obviously doesn't mean you should borrow more money just to get a lower interest rate, but it's something to keep in mind.
If you're unsure on how much money you're going to need, it's better to borrow a higher amount instead of borrowing a smaller amount at a higher interest rate, and then needing to borrow more money again later at that same higher interest rate. And if you're on the cusp of an amount range, you may just want to bump up the amount you're borrowing.
How Do These Interest Rates Compare with Those in Other States?
Florida title loan interest rates are one of the biggest benefits of borrowing a title loan in this state. In almost all other states, title loan interest rates are much higher, meaning you save quite a bit of money here.
In some states, such as Idaho, Delaware and Illinois, there is no cap on title loan interest rates. This gives title loan companies the freedom to set whatever interest rates they want.
In other states, there are interest rate limits, but they're very high. Alabama and Mississippi are two examples of this, as both allow title loan companies to charge interest rates of up to 25 percent per month. For a year, that would be an interest rate of 360 percent, over 10 times as much as the highest interest rate limit Florida allows.
Texas is just about the only state that has an interest rate limit anywhere near Florida's at 10 percent. However, in Texas, lenders can charge as much as they want in loan fees. Even with that lower interest rate limit, you'll still pay a considerable amount for those fees..
What's the Process for Getting a Title Loan?
A speedy application process is a bigtime title loan perk, and you can do that in person or through your computer with online title loans Jacksonville. Here's how you can apply for a title loan:
- Fill out the application, either online or at the title loan company's office.
- Show the lender your car so that they can see its condition and determine how much they're able to loan you.
- Give the lender your car's title to receive your loan.
When you've finished repayment on your title loan, your lender will return the car's title to you. While you pay the smallest amount in interest by paying the title loan off in full after the first term, this type of loan has flexible repayment terms, and you can extend it if you want by paying only any current interest charges.
Now that you have a full understanding of Florida title loan interest rates, you know exactly what to expect if you decide to get a title loan. If you're going to get a title loan somewhere, Florida is certainly an excellent choice not just for its low interest rate maximums, but also for its other borrower protections. Just make sure that you choose the amount you borrow wisely and pay back your title loan as quickly as you can.