A big misconception about people borrowing money from a service like Western Union is, that they will not have to pay much interest. This is not the case with a car title loan, which people may take out if they need money quickly. Read this article for tips on using these loans wisely.
There are various methods that car title loan companies employ to get around usury laws put in place for the protection of consumers. They put in charges that really just equate to loan interest. Therefore, in essence, the interest rate you are paying could be ten times more than the average interest rate provided by financial institutions.
Get a loan direct from a lender for the lowest fees. Indirect loans will also hit you with fees that will rack up your bill.
Have enough money in your account to repay your car title loan when it is due. If you miss your payments, the company will still attempt to collect what is owed to them. Your bank will get you with a non-sufficient funds fee, and then you’ll owe the loan company more. Budget your finances so that you have money to pay back the loan.
Avoid using a high-interest car title loan if you have other options available. This is because you suffer very large interest rates when applying for car title loans. You could wind up having to pay 25% or more of your loan in interest. If you’re thinking of getting a loan, do your best to make sure you have no other way of coming up with the money first.
The best way to handle car title loans is not to have to take them. Do your best to save a little money every week, so that you have a something to fall back on in an emergency. If you can save the money for an emergency, you will eliminate the need for using a car title loan service.
In addition to the interest rates and fees that come along with a quick loan, you should think about your bank account being overdrawn. Overdraft fees following a bounced check will just pile some more on top of the already very high cost of securing a car title loan.
Apply for your car title loan first thing in the day. Many loan companies have a strict quota on the amount of car title loans they can offer on any given day. When the quota is hit, they close up shop, and you are out of luck. Get there early to avoid this.
Only borrow the amount of money that you absolutely need. For instance, if you are struggling to pay off your bills, then this money is obviously needed. However, you should never borrow money for splurging purposes, such as eating out. The high interest rates you will have to pay in the future, will not be worth having money now.
Although you should never use car title loans as a primary way to pay your bills due to the high interest rates, they can be a great help if you need money quickly and have no other options. Remember the tips in this article, so you can use car title loans wisely.