Financial service companies will assess a high rate on the principal borrowed. Consider the APR for this loan, it would be somewhere in the range of 100% based on current financing regulations in Florida. In some extreme cases, some Miami title loan companies will charge rates as high as 200%.In this situation, the payback 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.
Keep in mind, that each lender is different and the rates and terms will vary because of the current Florida title loan requirements and the overall value or condition of your vehicle. Title loan companies may also have additional service charges based on late or nonpayment.
The following fees apply to title loans in Florida
-Loan Processing Fee equals 25% of the borrowed amount, but not less than $55 and not greater than $100.
-Loan Documentation fee that is equal to .5% of the borrowed amount, but not less than $3.50 and not greater than $10.
The interest rate or APR for a title loan in Florida typically ranges from 18% to 24% and can go much higher in certain situations where the original loan amount is rolled over, or if you extend the loan payments. The typical secured loan in Florida will need to be paid back over a period of time that’s reflected in your lending contract
Interest Rates And APR For A Florida Title Loan
For example, if you take out a $1,000 Florida title loan, you would have to pay back the original principal plus fees and interest which equals 25 percent or $125.00 in processing fees. The total amount due would be $1,125 for a typical title pawn or 24 hour title loan. If you did not pay off the loan on time your lender could report your late payment to a credit bureau which will likely damage your credit score. The monthly payment is typically reported to the credit bureaus regardless of whether the payment is on time or not.
While there is no limit as to how much a lender can charge for a late payment fee it should also depend on state laws regulating such practices. In either case, the maximum penalty fee charged cannot exceed 16 percent of the total loan balance due. The catch is that the consumer must have had the option of paying off their loan in full on time.
If you had to take out a Florida title loan for $5,000 then, just like the previous example, you would have to pay back 25% or $1,250 within 30 days. This would include the principal amount plus additional fees and interest charges making your total repayment amount more than what you were originally given. If you do not pay off your loan on time your lender could report late payment charges to credit agencies which can damage your credit score.
Late payment fees are usually very high so it’s best to try and avoid them by making regular payments instead of waiting until the month’s end when all outstanding debts are due at once
Other Rates And Fees To Expect With A Title Loan In Florida
There are some situations where you would see a Documentary Stamp Tax assessed by the lender. This is not always common and you can sometimes bundle this tax and other fees with your total amount borrowed. The tax is a state fee that is charged when you make a large purchase such as a car or boat
You will also see fees for document preparation and mileage reimbursement for those lenders who require you to drive to their office in person.