Car title loans provide a fast and efficient way to access money when an emergency arises. A late mortgage installment, rent payment or medical bills are some of the situations that warrant quick cash. If your car is fully paid off, you can easily qualify for a loan since it acts as collateral. Ask a lender from Utah Money Center if you can keep your car for easier movements and still make the payments.
Keep to Your Limits
The value of your car determines the amount you can borrow. Have your car inspected and valued before using it as collateral. Knowing beforehand the value of your car ensures you’re not shortchanged. Lenders will also inspect and assess your vehicle before approving your loan.
For the best results, don’t let the value of the car dictate just how much you borrow. Rather, base the amount on your ability to pay back the loan in full. See, title loans are a premium service, and as such, they carry a higher interest rate. They also have shorter repayment periods, usually 30 days, but they can be longer.
Understand the Payment Terms
Each lender has their preferred mode of loan repayment, either direct payment or a deduction from your paycheck. It’s important to know your options when making the application. The last thing you want is a method that makes it difficult to make your payments. You also need to be clear on the interest rate applied to your loan and its duration.
You also need to be sure of the fines and penalties that come attached with the loan. Sometimes, you can get punished for paying off early if you should come into some many and wish to clear the loan. The longer you stretch out the payment period, the more you will pay in interest.
Car title loans provide you with an easy way out when you’re in dire need of cash to sort out an emergency. However, you need to practice care and caution when applying for one to avoid landing into serious financial trouble down the road.