Tips For Taking Out An Auto Title Loan
Posted on: 5 June 2018
Many people have been in a situation where they need money fast, but payday is a week away, or the next paycheck won't cover an expense. If you need cash right away, you may want to consider taking out a title loan. With a title loan, your automobile serves as collateral, and the loan amount will depend on the value of your vehicle. Use the following tips to take out your first title loan.
Make Sure the Title Loan Service is Licensed
When looking at different title loan companies, it is important to choose one that is licensed. Each state has their own licensing requirements for title loan services, but getting a title loan from a licensed title loan service ensures that you're working with a company that follows all of the rules and regulations for the industry.
Know How Long it Will Take to Get Your Cash
If you're taking out a title loan, you most likely need money in a very timely manner. Before applying for a title loan with a title loan service, make sure that you know how long it will take to receive your cash. Some title loan services can fund loans in minutes, while others may take a few days. Also, ask how you will receive your money; if you get a title loan through an online title loan service, they may transfer the money directly to your bank account or send a check. If you apply for your title loan in person, you will most likely be given cash.
Understand the Total Cost of the Loan
Before you take out a title loan, it is absolutely essential to know the total cost of the loan. Like all types of lenders, title loan services charge interest on a loan, and there may also be fees that need to be paid. Always ask about what the total cost of the loan will be and find out if there are any penalties for paying off the loan early. Make sure that you can comfortably afford to pay off the entire cost of the title loan.
Ask About Payment Options
It is extremely important to know the terms of your title loan and how it will be paid. Some title loan services require payment weekly, while others offer bi-weekly or monthly payments. Prior to agreeing to a title loan, ensure that you are able to adhere to the title loan service's payment schedule; defaulting on a title loan can result in losing your vehicle.
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