Florida may be out of a recession, but it always seems that people are tight on cash. When this happens they will look for ways to get cash for short term financial needs. We all know about payday loans and instant cash advances but those are tough because the rates are high and you often can’t borrow much. Qualified residents can get a hold hold of the extra cash in a short amount of time. Using you car’s collateral is a great way to get emergency financing. Consider this option if you have bad credit or don’t want to deal with a bank or installment loan company. However, there are stories about people borrowing a large sum with hopes of paying it off in weeks. Only later do they realize that they owe more in finance charges than the principal itself. Many wonder how a financial arrangment like this can be legal. But it does happen and one can avoid such situations if he choose a company and pay the equity loan on time. One of the main culprit of high fees for with Florida online lenders is the rolling fees.
Finance service companies charge a high rate of the principal borrowed. Consider the APR for this loan, it would be somewhere in the range of 100%. In some extreme cases, some Miami based title loan companies will charge rates as high as 200%. 
In this situation, the pay back period is calculated by days rather than weeks. An online lender that provides $100 requires a payment of $115 on payday. If the borrower misses the payment, it will be rolled over to the next payment date and the next payment will then be $130. If this sequence is repeated for four pay periods, the borrower owe a total of $60 in finance charges, that’s a full 60% of the principal. When a full seven pay periods is rolled over, the finance fees will be more than the original amount of money borrowed. This is one situation where it should be avoided at all cost. We know regulations in Florida should stop fees and interest from rolling over. However, they don’t always apply to borrowers who seek out online title loans. Also, there are local lenders in cities like Fort Myers, Miami, and Orlando that attempt to skirt licensing restrictions. For example, Miami requires some businesses to obtain a permit or business license before they operate in the city. Check your city and county requirements before signing a contract.
One simple way to avoid this situation is to research the rates before even taking out a cash loan. Many borrowers need cash for an emergency. They look past the situation and understand it’s a short term request. Some applicants take out a title loan without comparing rates between each online lender. Many times they go with a higher rate loan with a title lender who promises them more money up front. A Borrower should spend a couple of hours online understanding the payment structure. Search for better first time deals online before taking out vehicle equity financing. Work with a local company who provides the best rates and fee disclosures before you sign up. We know by doing this they can lower or eliminate some of the fees involved.
The other obvious way to avoid a roll over fee is to pay back the title loan on time. This is a simple and realistic way to avoid the rolling fees. Work with your local Florida company to deduct from the payoff itself. You can fix any tendency not to pay and make sure that it is a full repayment and not a partial monthly payment. Most cash advance firms will allow a partial payment, but this is nothing further from the truth. The next solution to emergency cash is to consider other sources of credit. Even though credit card also charges a high interest rate, it is still lower than an installment or payday loan. Increasing your debt amount will impact your credit score and payment history. So, the same old rules apply here as with an online title loan. Make your monthly payments on time without fail. By doing this you don’t need to work with bad credit lenders when you need same day cash.
Use a credit counseling service to help an individual plan out finances after you pay off the loan in full. A credit counselor can help to point people towards sound financial services. Most reputable car title loan lenders will help you find a licensed firm that provides these services. Also consider a title loan company that helps with payday loan reduction. They will work to improve your credit score and help setup a monthly budget. Our article explains the way to reduce the finance charges for short term financing. You should not consider a title loan in Florida if the need is not critical. Instead, plan your financs and take control of your budget and expenses.
Once you default in your repayment the creditor will take steps to collect. There are a number of banks and agencies that give online title loans but most consumers won’t qualify. To see approval with a bank you will need to show great lending history and good to perfect credit score. Florida residents have many options if they fall into this bracket. Those with good credit can go to any local bank or lender in Florida. Cities like Miami and Jacksonville have hundreds of banks that provide low interest loans. Once again though, you need a decent to great credit report score! Car title loans are often used for unforeseen expenses. This type of borrowing should not be used casually as the charges will quickly add up. Personal loans carry a high rate of interest and along with this a host of other fees like a prepayment penalty and overdue payment penalty are included. Before taking a personal loan, be sure to know the repayment terms. Check the 
In the simplest possible way, a secured loan has a piece of collateral that the bank will seize in the event of a default. They have cheaper interest rates but are comparatively more risky. A standard bank loan does not have any collateral to protect it; so that would mean they would charge a penalty for not paying the loan in time. A car title loan is a secured loan while a personal loan is an unsecured one. As an unsecured loan does not take collateral into consideration, in the event of a default, lenders tend to use a borrower’s credit score as security. In a general manner of speaking, an unsecured loan will be available to an individual who has a good credit history. But the absence of collateral also causes the bankers to charge higher interest rates, sometimes up to 300 percent. Most banks in Florida are regulated by the 
With this article we hope to give you a few tips on how to better understand the lending framework in Florida. Let’s get right to the details on what’s different with Florida regulations and other states.
Some state regulations put restrictions on this when it comes time to calculate the payday loan terms. This means both consumer and service provider have legal protection but the cost is high. Be sure to read your contract terms before making plans for a car title loan. See how much one will be able to borrow so the budgeting is realistic and accurate. Don’t try to “trick” the lender into giving more than they should. Companies that give out title loans in Florida know the regulations that cover personal loans. A borrower who does this can put the lender and the borrower alike in a tough spot. Many of these loans are taken out online through a simple internet search. Compare that to a few years ago when you can go down any street in Florida and find a payday loan company. Payday advances taken out in this fashion are far more convenient than visiting a brick and mortar establishment. Most still will post the regulations that apply to the states in which the company does business. Not all lenders do business in every state. Florida and California have the largest section of short term lending companies. Be sure to check and make certain that any lender is allowed to provide their services in one’s state of residence.