Everyone has to borrow money sometimes and it’s a good idea to know some ways on how to easily get a title loan if you ever need one.
If you have decided that now is the time for you to get a title loan, it’s important to be prepared for what will happen next.
1. Research your loan options
Loan rates can vary greatly among different lenders, so it’s important to know how much you can afford and shop around. Financial advisers from https://www.facethered.com/ recommend starting with a few online searches (preferably the top-rated or best title loan companies) and then calling a couple of companies to get more specific quotes and information into what kind of credit score they’re looking for. The last thing you want is to be surprised when presented with your loan obligation.
Title loans are very popular in this day and age because they offer quick cash without the headache of traditional bank loans or other financial options such as pawn shops etc. You don’t need great credit to qualify for one, just proof that your vehicle will deliver the value required by the lender should things go wrong. Loan amounts depend on the equity in your car but $5000 is about average for most applications.
2. Make sure your car is paid off before getting a title loan
If your car isn’t paid off yet, chances are the lender won’t lend you any money at all unless clearance has been granted first by a bank. If your car is paid off, you will have a better chance of getting a loan. On the bright side, though, title loans don’t require a credit check. When you apply for a loan like this, all that matters is how much your vehicle is worth and what it’s worth to the lender of course! If you have equity in your car then all of your information can be held privately and no one will know about your business except yourself. This makes applying more comfortable than traditional cashing avenues like pawn shops etc. Plus, there are more options available such as online lenders who can get you approved super fast without having to leave home
3. Fill out the application right and Avoid late fees or missing payments
Unlike typical financing options, title loans don’t have long terms and high rates because they’re meant to be repaid quickly in order to give the borrower time to improve their situation or provide additional funds elsewhere. If you’ve been turned down by other banks etc then this could be the perfect way to get yourself back on track. Just be sure that you fill out the application right so that you know how much money you can borrow and what your payments will be.
If for some reason you cannot make your payment on time, call the lender ASAP so they can work with you rather than against you. The last thing you want is to be considered “delinquent” with them because then you’ll pay even more in fees and interest rates for something that could’ve been avoided in the first place.
4. Don’t do anything stupid
This advice might seem unwarranted at times, but the temptation of quick cash can be overwhelming at times. Thus, do not use your title loan money for drugs or anything illegal (duh!). You probably shouldn’t be doing that anyway but if not, definitely don’t do it when you’re putting up your vehicle as collateral! Save yourself the stress and just have a clear head when dealing with these types of financial matters.
5. Consult a financial advisor or credit counselor
If you’re already in deep trouble financially, talking to a credit counselor might be the best option for you if you need help determining your next move. They can help you find other options for getting money that is better suited to your needs and they can give advice on how to handle your current situation without going into further debt with bad interest rates.
6. Read documents and contracts thoroughly
Always read everything before signing anything. Even one small word or number can make a difference in what rights and responsibilities both parties have. On the back page, there may be something stated about “this agreement not being valid until it has been signed” but those words aren’t there as a formality – those words are there for you to see your current financial situation clearly before going into debt.
If you’re not sure what a title loan is, chances are you’ll find out soon enough depending on how desperate you are for a little extra money in the meantime. File this away as a last resort only and make sure that once you get it, spend it accordingly, or else things could end up going from bad to worse much faster than expected! You don’t want that because then it just keeps making the problem bigger and bigger as time goes by.
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