Anytime you are in a financial pinch, it may make sense to think about car title loans. These loans are great for unexpected expenses that happen between car titles. Keep reading for useful car title loan information that can help you now.

Keep in mind that with a car title loan, your next paycheck will be used to pay it back. The money you borrow should be able to cover your emergency and other expenses for at least two pay periods. If you do not consider this fact, you will wind up with another loan, thus beginning a cycle of debt that can continue indefinitely.

If you have to take out a car title loan, the standard payback time is about two weeks. Unexpected events come up in life and if you find that you are unable to pay your loan back by the time it is due, you do not have to fear that you will default. A lender may offer the option to roll over or extend payments but there are extra costs to doing that.

Conduct as much research as possible. Do not settle for the first lender that you find. You need to do research on several companies to find the best deal. Taking the time to do the research can save you a lot in the final costs. There are many online services that will help you compare companies.

If you find yourself stuck with a car title loan that you cannot pay off, call the loan company, and lodge a complaint. Most people have legitimate complaints, about the high fees charged to extend car title loans for another pay period. Most loan companies will give you a discount on your loan fees or interest, but you don’t get if you don’t ask — so be sure to ask!

If you must get a car title loan, open a new checking account at a bank you don’t normally use. Ask the bank for temporary checks, and use this account to get your car title loan. When your loan comes due, deposit the amount, you need to pay off the loan into your new bank account. This protects your regular income in case you can’t pay the loan back on time.

Evaluate alternative lending options before deciding to apply for a car title loan. To avoid high interest rates, try to borrow only the amount needed or borrow from a friend or family member to save yourself interest. There are so many fees with car title loans that will be higher than any of the other options that may be available to you.

If you have been in trouble with car title loans before, get some help. Their free services can help you get a lower rate or consolidate your loans to help you escape from your predicament.

It can be hard to remain financially stable, especially in a recession. Hopefully this article has helped you find out everything you needed to know about car title loans so that you can make an informed decision. Knowledge is the best weapon you have against fraud.

Leave a Reply