Boat Title Loans In Florida - How They Work
Did you know you can use a boat as collateral for a title loan, and in some cases, you can borrow $1,000 or more by tapping into the equity from your boat. We've helped Florida borrowers qualify for vehicle-secured loans for nearly a decade, and over the past few years, boat title loans have become quite popular. We all know that boats are part of life in Florida, and there are now more than 1 million registered vessels in the state. They don't call it the Boating Capital of the World for nothing. So why not use some of the equity in your boat as collateral for a loan? Read on to find out how these loans work and what's required.
Boat Title Loan Requirements
Similar to taking out a car title loan, you need a few things to qualify for a loan using your boat's equity. The boat needs to be titled in your name and registered. It must have a clear title, and the boat's title must list you as the sole owner. Most boats will qualify, but we'll need basic details to get you a pre-qualification estimate, such as the year, make, model, and current mileage. Other requirements include proof of identity (driver's license or passport) and proof of Florida residency. While newer paid-off boats have the best chance of qualifying as collateral for a loan, most lenders require the boat to be worth at least $3,000, though minimum value requirements vary by lender.
While a lien free title is the most crucial requirement, there are a few other things we need. Lenders will need proof of income to ensure you can repay the loan. You can show income with bank statements, social security payments, or pay stubs. Lastly, we'll need proof that the boat is insured, as lenders may require it to protect their collateral.
Bad Credit Title Loans On A Boat
When listing the requirements, you may have noticed that you don't need good credit, which is one of the best things about these loans. Since you're using the boat's equity as collateral, there's less emphasis on having to check your credit. Most customers in Florida won't even have their credit checked, and even if they do, it's only to look for recent defaults or to verify their identity. Your credit history becomes an issue only if you're in bankruptcy proceedings when you apply or if you're behind on payments on your current bank line. But even in that case, you wouldn't have title to your boat because you still owe the original lender.
Are you looking to rebuild your credit score to avoid taking out a high-interest loan? A title loan on a boat may help you with future loan requests, as most lenders in Florida report your payments to the credit bureaus. Stay on time with your monthly payments, and you can see a significant increase in your credit score.
What Types Of Boats Qualify
We could list the hundreds of makes and models that you can use for a title loan on a boat, but ultimately, your boat will qualify if it has enough value to secure a loan. That includes sailboats, cabin cruisers, motor boats, yachts, and pontoon boats. We've even seen people qualify using the equity in jet skis and other personal watercraft.
Lenders typically offer a loan based on 30% or more of your boat's value. That means you can get a $1,000 loan if your boat is valued at $3,000 or more. We use the current resale value of boats in Florida to determine your lending estimate and most lenders will require a quick inspection of the boat before they agree to a loan. During the inspection, they'll verify the boat's physical condition, confirm the certificate of documentation, and look for any damage or defects that may reduce the boat's resale value.
Inspection For A Boat Title Loan - Are They Always Required
If you plan to borrow $3,000 or more with a boat as collateral, you'll likely need to commit to an in-person inspection so the lender can verify its current value. Unlike title loans on cars or motorcycles, boats can be more difficult to track down if you default on the payments, and therefore, there's a lot more risk when you use a boat as collateral for a loan.
In addition to a visual inspection of your boat, your lender may also want to install a tracking device on the boat, especially if your loan amount is $5,000 or more. These tracking devices allow lenders to know where the boat is at all times, and you can often borrow a larger amount of money if you agree to this stipulation. These loans aren't for everyone, and there are other ways to get a secured loan if you're not comfortable with an in-person inspection. We work with lenders who specialize in fast approval for cars and motorcycles, and borrowers with enough equity in their car, motorcycle, or boat can pre-qualify with us.
Get Your Boat Title Loan Now In Florida
If you need cash today and own a boat, there's a good chance you can cash out some of that equity and get a loan that doesn't require good credit. Call Florida Title Loans at 888-986-8505 or apply online to find out your boat's equity value. We'll get right to work on your pre-qualification and connecting you with a licensed lender in Florida who can provide a quote. Call us today to start your application.