Are you in some kind of financial mess? Do you need just a few hundred dollars to help you get to your next paycheck? Car title loans are out there to help you get the money you need. However, there are things you must know before applying for one. Here are some tips to help you make good decisions about these loans.
For individuals who are considering using a car title loan, it is important to understand when you must pay it back. The interest on car title loans can be as much as 400 percent, so make sure you understand that before accepting a loan offer.
When you take out a car title loan, keep in mind that you’re essentially not getting a paycheck for the next pay period. This will cause you problems in the next pay period that may send you running back for another car title loan. Not realizing this can start a recurring cycle of debt that could last a long while.
Beware of falling into a trap with car title loans. In theory, you would pay the loan back in one to two weeks, then move on with your life. In reality, however, many people cannot afford to pay off the loan, and the balance keeps rolling over to their next paycheck, accumulating huge amounts of interest through the process. In this case, some people get into the position where they can never afford to pay off the loan.
Keep in mind that you must pay the funds that you get in a car title loan back very fast. You need to understand that the money to pay back the loan will be due to the company on your next pay date, usually two weeks. This rule could be altered in the event that you are getting paid in less than two weeks from when you get the loan. The associated fees will be lower and you will have more time in which to repay the loan.
Make sure you are familiar with the company’s policies if you’re taking out a car title loan. Most companies require you to demonstrate a steady employment history, generally in the range of 3-6 months. They need to ensure you will have the funds to pay your loan note.
If you have made up your mind and are definitely going to get a car title loan, please be sure to get everything in writing before you sign a contract. Some car title loan sites are scams that actually offer you a subscription to something and will take money out of your account without your permission.
Ensure you have all of your paper work when you are applying at a car title loan office. Just to apply, you have to show how old you are and how regular your income is.
A car title loan can help you during a tough time. You just have to make sure you read all the small print and get the information you need to make informed choices. Apply the tips to your own car title loan experience, and you will find that the process goes much more smoothly for you.