It’s a matter of fact that car title loans have a bad reputation. Everybody has heard the horror stories of when these facilities go wrong and the expensive results that occur. However, in the right circumstances, car title loans can possibly be beneficial to you. Here are a few tips that you need to know before entering into this type of transaction.
Research various car title loan companies before settling on one. There are many different companies out there. Some of which can charge you serious premiums, and fees compared to other alternatives. In fact, some may have short term specials, that really make a difference in the total cost. Do your diligence, and make sure you are getting the best deal possible.
Those who need money now may need to turn to car title loans. However, these people should realize exactly what they entail prior to applying for these loans. These loans carry high interest rates that sometimes make them difficult to pay back.
Car title loans can be helpful in an emergency, but understand that you could be charged finance charges that can equate to almost 50 percent interest. This huge interest rate can make paying back these loans impossible. The money will be deducted right from your paycheck and can force you right back into the car title loan office for more money.
Be on the lookout for scammers while shopping for car title loan companies. Make sure that the car title loan company you are considering is a legitimate business, as fraudulent companies have been reported. If you’re interested in a company, make sure you check out the BBB (Better Business Bureau) website to see if they are listed.
Understand when your loan is due to be paid back in full. These loans come with a pricy interest rate, and there are usually extremely high fees if you make a late payment. Because of this, you need to make sure that you repay the loan in full before the due date.
Don’t do business with car title lenders who do not make direct deposits. You can get the money fast, maybe the same day or the next. This can help a lot, reducing the cash on hand that you will have to carry.
Do not use the services of a car title loan company unless you have exhausted all of your other options. When you do take out the loan, make sure you will have money available to pay back the loan when it is due, otherwise you may end up paying extremely high interest and fees.
When dealing with car title lenders, always ask about a fee discount. Industry insiders indicate that these discount fees exist, but only to those that ask about it get them. Even a marginal discount can save you money that you really do not have right now anyway. Even if they say no, they might point out other deals and options to haggle for your business.
You now know the pros and cons of entering into a car title loan transaction, you are better informed as to what specific things should be considered before you sign on the bottom line. When used wisely, this facility can be used to your advantage, therefore, do not be so quick to discount the possibility if emergency funds are required.