With the current economic climate, it is not uncommon to need a little help every once in a while. If you desperately need money, then you might find a car title loan useful. A car title loan is like any other loan. There are commitments and requirements to be met, and it is important to understand everything involved. This article will give you the information you need to better understand car title loans and how they work.
Understand what APR means before agreeing to a car title loan. APR, or annual percentage rate, is the amount of interest that the company charges on the loan while you are paying it back. Even though car title loans are quick and convenient, compare their APRs with the APR charged by a bank or your credit card company. Most likely, the car title loan’s APR will be much higher. Ask what the car title loan’s interest rate is first, before you make a decision to borrow any money.
Hidden fees are very prevalent when dealing with car title loans. There is no indignity in asking pointed questions. You have a right to know about all the charges involved. It is common for individuals to end up with a much higher bill than they anticipated after they sign on the dotted line. Find out all you can upfront.
One way to make sure that you are getting a car title loan from a trusted lender is to seek out reviews for various car title loan companies. Doing this will help you differentiate legit lenders from scams that are just trying to steal your money. Make sure you do adequate research.
A good tip when taking out a car title loan is to make sure that everything on your application is truthful. You can actually go to jail for fraud if you lie.
Poor credit does not necessarily exclude you from car title loans. Lots of people who need car title loans fail to apply simply due to their poor credit histories. Most car title loan companies will allow you to take out a loan so long as you have some sort of income.
Compile a list of every single debt you have when getting a car title loan. This includes your medical bills, credit card bills, mortgage payments, and more. With this list, you can determine your monthly expenses. Compare them to your monthly income. This will help you ensure that you make the best possible decision for repaying your debt.
Always try to consider alternative ways to get a loan prior to getting a car title loan. Even a cash advance from your credit card could result in a lower interest rate. Better yet, find a friend or family member willing to help you out.
Many individuals are seeking new options to help them out of financial binds. It is more difficult to get credit these days, and this can hit you hard if you need money right away. If you’re struggling for money, a short-term car title loan may be a solid way to go. Remember to use what you’ve learned here to help you with the process.