Common Mistakes to Avoid When Getting a Title Loan
If you’ve ever found yourself hit by a medical or automotive emergency or sudden expense of some kind, you know that nothing can get you back on your feet faster than having access to cash. Not all of us are lucky enough to have savings we can dip into to handle an emergency situation. So, what can you do when the unexpected strikes?
How Title Loans Could Help
Title loans let you use the title of your car as collateral for a fast cash, short-term loan. They’re designed to be a convenient and effective way to get your finances back on track as soon as possible. However, they aren’t right for every individual or situation and you should always do your research before getting one to ensure that a title loan is right for you. To help you with that process, here are three of the most common mistakes to avoid when choosing a title loan provider, and how to avoid them.
Not Knowing How Much Your Car is Worth
Before you take out a title loan, it’s worth getting an idea of how much cash you can reasonably expect to qualify for. While the upper limit of how much you could get with a California title loan is $15,000, the amount you could actually receive is based on a vehicle inspection. This is usually be performed by a store manager who will base your loan amount on the condition, make, model and year of your car.
An easy way of getting a ballpark idea of how much your vehicle is worth is to use online resources and car valuation guides. These won’t give you an exact number, but they will provide you with a general idea of your car’s wholesale value before you consider an offer from a potential lender.
Not Considering How Much Debt You Can Handle
It’s always tempting to discount the potential consequences of our actions to get what we want in the short-term, but with title loans, it’s essential to figure out how much debt load you can responsibly handle. Take a look at your finances to determine how much extra cash you have to put towards paying back the loan, and how long it will take you to pay the loan back in full. Title loans are short-term loan with higher interest rates than conventional loans, but the simple exercise in financial responsibility of knowing when to use them could save you considerable amounts of money.
Making Late Payments
If you’ve followed the last two steps then you should be fine, but it’s important to try and avoid late payments at all costs. They can add up faster than you think, and ultimately, it’s your responsibility to pay back your loan on time. If you do have trouble making payments, it is essential to contact your lender as soon as possible. In most cases, a licensed lender will have trained professionals who can make alternative payment arrangements to help you successfully repay your title loan. The key is open, honest, and timely communication with your lender at the first sign of trouble.
Get a Title Loan Today
If after looking over these tips you’re ready to take out a title loan you can get started right now by filling out a simple online request form and answering a few simple questions. After you’ve filled it out a representative from a location near you will give you a call back to walk you through the approval process and answer your questions. After arriving at a store location with the required items, you could leave with cash amounts up to $15,000 in as little as 30 minutes. You also keep and drive your car, so keep these 3 common pitfalls of title loans in mind and go find the extra cash you need today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.