In today’s difficult economy, many people are finding themselves short of cash when they most need it. But getting a bank loan in a timely manner can be difficult, particularly if your credit is poor. If this scenario fits you, a car title loan may be your best choice.
Be prepared for the fees that accompany the loan. You know you need money but be smart about signing with a car title loan agency. Request written documentation of the fees that will be assessed. If you take these steps prior to taking out the loan, you’ll minimize the amount that you need to repay.
Look over every fee that you’re going to have to pay when you get a car title loan. In this way, you will know exactly how much your loan will cost. Interest rate regulations have been created to give customers a level of protection. However, the loan companies may tack on fees to get around these regulations. These fees can drastically add to your costs. This may help you decide whether the loan is absolutely necessary.
Before taking out that car title loan, make sure you have no other choices available to you. Car title loans can cost you a lot in fees, so any other alternative could be a better solution for your overall financial situation. Look to your friends, family and even your bank and credit union to see if there are any other potential choices you can make.
Be very careful rolling over any kind of car title loan. Often, people think that they will pay on the following pay period, but their loan ends up getting larger and larger until they are left with almost no money coming in from their paycheck. They are caught in a cycle where they cannot pay it back.
Ask ahead of time what kind of papers and information you need to bring along when applying for car title loans. Most companies require a current paystub, a valid checking account and proof of employment. Inquire by phone beforehand as to what documentation will be needed so that you save time when you arrive to apply for your car title loan.
If you have to take out a car title loan, make sure you read any and all fine print associated with the loan. If there are penalties associated with paying off early, it is up to you to know them up front. If there is anything that you do not understand, do not sign.
Make every attempt to pay off your car title loan on time. If you can’t pay it off, the loaning company may force you to rollover the loan into a new one. This new one accrues its own set of fees and finance charges, so technically you are paying those fees twice for the same money! This can be a serious drain on your bank account, so plan to pay the loan off immediately.
You can get a car title loan quickly without having to take a bunch of steps. But, prior to agreeing to this kind of loan, make sure you know all the details. Avoid adding more financial difficulties to your life by making use of the advice you got in this article.