Sometimes, everyone has to deal with an unexpected bill or expense. Sometimes, your paycheck isn’t enough to cover the costs. You might need some financial help. This article should give you useful information about using car title advance loans as a financial option.
Call around and find out interest rates and fees. Most car title loan companies have similar fees and interest rates, but not all. You may be able to save ten or twenty dollars on your loan if one company offers a lower interest rate. If you often get these loans, the savings will add up.
Typically, car title loans need to be paid back in two weeks. If you can’t pay it back within that time, you won’t necessarily go into default status. A lot of lenders will allow you “roll over” your loan and extend the repayment period; some even do it automatically. Just be aware that the costs associated with this process add up very, very quickly.
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.
Consider shopping online for a car title loan, if you must take one out. There are numerous websites that offer them. If you need one, you are already tight on money, so why waste gas driving around trying to find one that is open? You do have the option of doing it all from your desk.
Many car title loan lenders will advertise that they will not reject your application due to your credit score. Many times, this is right. However, be sure to look into the amount of interest, they are charging you. The interest rates will vary according to your credit score. If your credit score is bad, get ready for a higher interest rate.
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.
When determining if a car title loan is right for you, you should know that the amount most car title loans will let you borrow is not too much. Typically, the most money you can get from a car title loan is about $1,000. It could be even lower if your income is not too high.
A car title loan can help you out when you need money fast. While they may carry high interest rates, when used sparingly, they can be useful. Make a car title loan work for you by utilizing the information provided to you here.