Sometimes, people get in a tough financial spot. An infusion of cash may be necessary, and a car title loan seems a good option. You will find out some information about this type of lending from this article.
Always know that the money that you borrow from a car title loan is going to be paid back directly out of your paycheck. You need to plan for this. If you do not, when the end of your pay period comes around, you will find that you do not have enough money to pay your other bills.
Make certain you understand all fees you must pay. You know you need money but be smart about signing with a car title loan agency. Be certain the car title lender gives you a list of all pertinent fees. This needs to be received before you file your application.
There are many penalties for not paying on time, and you should be aware of this. Sometimes, there may be unforeseen circumstances that change whether you can pay back a loan. It is essential to read the terms of the loan so that you understand the late fees you may face. There can be very high penalties associated with car title loans.
Look for different loan programs that might work better for your personal situation. Because car title loans are becoming more popular, loan companies are stating to offer a little more flexibility in their loan programs. Some companies offer 30-day repayments rather than one to two weeks, and you may qualify for a staggered repayment plan that can make the loan easier to pay back.
If you are in the military, you have some added protections not offered to regular borrowers. Federal law mandates that, the interest rate for car title loans cannot exceed 36% annually. This is still pretty steep, but it does cap the fees. You should check for other assistance first, though, if you are in the military. There are a number of military aid societies willing to offer assistance to military personnel.
If you are seeking out a car title loan but have less than stellar credit, try to apply for your loan with a lender that will not check your credit report. These days there are lots of different lenders out there that will still give loans to those with poor credit or no credit.
Do not get a loan for any more than you can afford to pay back on your next pay period. This is a good idea so that you can pay your loan back in full. You do not want to pay in installments because the interest is so high that it will make you owe much more than you borrowed.
Check your credit history before you look for a car title loan. Consumers with a healthy credit history will be able to get more favorable interest rates and terms of repayment. If your credit history is in poor shape, you can expect to pay interest rates that are higher, and you may not be eligible for a longer loan term.
Hopefully the information in this article has helped you learn more about car title loans and how they work. Always make sure that you understand all of the loan terms by doing all of the research that you can. Your priority should include sound management of your personal financial situation.