Our life is full of unforeseen expenses. It happens that money is needed at the most crucial moment. A tooth hurts so much, a car breaks down, kitchen appliances wear out, an urgent visit to the vet… How to solve the problem so as not to become bankrupt? The best option to cover all costs is to take personal loans in Florida. Why are they so good, and how to get a loan? You will find answers to these and other questions in this article.
Florida is the most southeastern state in the United States. Another name for Florida is the Sunshine State. It is a popular tourist destination, land of oranges, beaches, and world-famous theme parks such as Disney World and Universal Studios.
While Florida is a fascinating tourist destination for millions of people, many locals are struggling to make ends meet and pay off their debts. According to official figures, 12.94% of the population lives in poverty, which means that more than 2.8 million people do not have enough money to cover all their expenses and need financial assistance. Fortunately, loans do not allow people to run into heavy debts. So, if you live in the Sunshine State, you should know what types of loans in Florida are available to you.
Title Loan. A title loan is a short-term, secured loan that requires collateral. In this case, collateral is your vehicle. So, if you fail to pay off the loan on time, the lender will seize your car and sell it to discharge your debt. With a title loan, you can get up to 25% of the total value of your vehicle. The typical loan term is 15 to 30 days. However, some lenders may give you extra time to pay the money back. At the same time, they charge higher interest rates if you decide to repay the loan on an installment basis.
Payday Loan. Payday loans are a type of unsecured personal loans Florida that do not require collateral. This is a quite popular short-term loan that allows you to borrow a certain amount and pay it back on your next payday, including all fees. And besides, this amount directly depends on your income. In addition, payday loans feature interest rates that typically range from $8 to $10 per each $100 you borrow.
Installment Loan. This is one of the most popular personal loans Florida. You borrow the needed amount of money and pay it back in installments over a certain period (usually about several months). Personal loans are used to cover expenses in any area of life, for example, to pay bills, fix a car, arrange a wedding, or pay for medical care. Nowadays, you can easily take Covid personal loans Florida to get the best medical treatment. Also, personal loans Florida are characterized by certain eligibility requirements. Thus, you must have a stable income and a high credit score to be approved for the best loan offers. Other features of personal installment loans include:
According to the Florida loan regulations, lending money is legal. All terms are specified in § 560.402-§ 560.408 Statutes. This means that lenders can give you money, set repayment terms, and impose fees for their services on legal grounds. However, there are some legal aspects that you need to know before applying for a loan. This will help you avoid unscrupulous lenders who dare to break the law to profit from ill-informed clients.
The Florida government has developed interest rate laws to protect people from dishonest lending agencies. Therefore, there is an established interest rate that does not have to exceed 18% for loans less than $500 000. If your loan amount is higher, the interest rate can reach 25%. However, there is an exception – the maximum interest rate does not apply to national banks and small loan companies.
In addition, a lender may charge you some other fees, which include:
The terms of personal loans usually vary from 12 to 60 months. But the law allows lenders to extend this period in order to provide clients with more comfortable conditions for repaying the loan. Thus, you can pay off the debt for up to 7 years, although a rollover may lead to higher interest rates.
Many people doubt whether it’s worth applying for a personal loan. We want to dispel your doubts and shed light on the issue. So why is it a good idea to take a personal loan in Florida? What are its advantages?
✔ Flexible terms. This is one of the top benefits of personal loans Florida. You can choose a payment plan that is convenient for you. Therefore, you will repay the loan without getting into a vicious cycle of debts.
✔ Collateral is not typically required. You do not have to risk your home or car for personal loans in Florida. Collateral is needed only if you are going to take a title loan.
✔ Fixed repayment schedule. When you get a personal installment loan, the payment terms are clearly defined. So, you know when you need to make the next payment and when your debt will be discharged.
✔ Lower fees than credit cards. Interest rates on credit cards in Florida are often as high as 15%, while personal loans traditionally charge you from 5% to 10% of the amount of money you borrow.
✔ Ability to build a good credit history. The terms of personal installment loans force you to pay off the debt on time. This gives a strong boost to your credit scores and overall credit history.
✔ Ease of getting a loan. Since money lending is legal in Florida, there is a large number of lenders willing to provide you with personal loans on different terms and conditions. What's more, many agencies operate online so you can take a loan from the comfort of your home.
✔ Versatility. Personal loans Florida cover a wide range of costs. You can use them to pay for major purchases, car maintenance, home improvement, traveling, wedding, business, education, and medical services.
The first thing you should do before applying for Florida personal loans is to determine if you qualify for them. Although there are many lenders in Florida, the requirements for obtaining a loan are almost the same. Here's what you should consider:
Lenders always look at your credit score to determine if you are creditworthy. A low score indicates that it is risky to lend you money. Consequently, they charge high interest rates to protect themselves in the event of your default. The higher your credit score, the lower the APRs you get. So, if you can boast a score higher than 640, lenders will treat you more loyally and offer better conditions for personal loans Florida.
Payment history directly affects your FICO score as it makes up 35% of it. Detrimental marks on late payments remain on your credit profile for up to 5 years. This negatively affects your credit history and, therefore, your FICO score. Thus, lenders may deny your application. However, if you pay your debts on time, your chances of getting approved for a loan increase significantly.
The best personal loans Florida are available to those whose income is stable. Lenders consider this factor important to ensure that you can make payments on time. It does not even matter how much you earn; the point is that the money is credited to your account regularly (on a monthly or biweekly basis).
You should pay special attention to this factor if you have more than one debt. DTI allows lenders to identify how much of the budget you are willing to allocate to repay the loan. For example, if your DTI is 20%, that means you can spend 20% of your earnings on debt repayments. The higher the DTI, the more money you spend to pay off the loans, so the chances of your default increase. To be approved for a loan, your DTI must be 35% or lower.
Empire Finance is a convenient and useful service that will help you get extra money without much effort. Getting a loan has never been easier! Just follow these steps:
Even if your credit score is not as high as you would like, you can still get a loan in Florida. Many people are in the same situation, so personal loans for bad credit Florida are quite popular. However, you are unlikely to get a loan from a banking institution if you have less-than-perfect credit. So, it's better to resort to online lenders. And Empire Finance is exactly what you need. The lender offers favorable terms for clients with any credit score. Moreover, you will receive bad credit personal loans Florida as quickly as possible.