Get Cash Fast, When You Need It
If you’re facing down a surprise bill or expense and aren’t sure how you can pay it before it gets sent to collections, car title loans could save the day! These short-term loans let you borrow money against the value of your car and come with manageable payment plans, without having to undergo credit checks or fill out complicated personal loan paperwork with your bank or credit union.
You can find title loan companies in your city who are prepared to help you out of a financial bind. As you research your options, keep these helpful dos and don’ts in mind.
DO Bring Your Car and It’s Clear Title to Apply for a Loan
To qualify for a title loan, you must own your car outright, and the car title must be in your name. You cannot have any outstanding liens on the vehicle, including any money owed to the bank for your original car loan. You’ll need to bring your vehicle and its title to the title loan company. The company will hang onto your title for you while your loan is active, but you can drive away in your vehicle and keep your keys.
DON’T Expect to Get a Huge Loan from a Car Title Loan Company
Car title loans are designed to be short-term ones, and they vary from a couple hundred dollars to a couple thousand. You likely will not get a loan for the full value of your car, and certainly not one for more than the value of your car. If you need a larger loan, unfortunately, a title loan may not be the right product for you.
However, we still recommend inquiring with your title loan company of choice! They may be able to accommodate you with another one of their loan products, or find a way to help you get the cash you need in an emergency.
DO Ask Questions if You Don’t Understand Something
Car title loan experts are generally very good about explaining the terms of your loan, how to go about paying it back, and what happens if you need an extension of your payment plan. They also are required to disclose the interest they charge on the title loan.
If you have any questions about the process, your loan, or a related topic, ask while you are at the title loan company before you sign the paperwork to borrow money. Get clarification in advance, and request copies of your loan agreement so you have it to refer to in the future.
DO Pay Back Your Loan on Time
Although you do not need a credit check – and thus can have poor credit or no credit at all – to take out a car title loan, there are consequences should you choose not to pay back your loan or make on-time payments. For one, you could be charged a lot in interest or penalties. And if you take the money and run, you can expect that your car will be repossessed to cover your debts.
If, for some reason, you are unable to make a payment, call the car title loan company in advance to let them know and see if they can work something out for you. It is their goal to help people who need cash to get it quickly, and they love it when their clients are communicative about what they need.
DON’T Borrow More Than You Can Comfortably Repay
If you fear that you are not going to be able to pay back a car title loan on a reasonable schedule, it may be best that you don’t take one out – or that you take out one that you can afford to pay back with your income from your paychecks. Talk to the title loan company about how payments work, and always keep your monthly budget in mind before taking out a loan of any kind.
DO Tell Your Friends if You Had a Good Experience
Did a car title loan company help you get the money you needed? Tell your friends if you had a good experience, so that they, too, can have a good experience when they need money. Leave your car title loan company an online review, or consider providing them a testimonial for their website.
Finding a good car title loan company means you’ll always have access to cash should an urgent situation arise. You can help others by sharing your opinion about this service.