You may have heard some scary things about car title loans in the past, but the fact is that thousands of people across America use them every year to get themselves through temporary financial setbacks, and hardly any of them have to give up their vehicle. That being the case, it’s time to look at car title loans honestly and dispel some of the myths surrounding them. When should you get a car title loan? When should you avoid one? What do you need to look out for, and how can you make sure you pay the loan back in time? These are all questions that you need to ask yourself before you take a title loan out on your vehicle, and with the help of this article hopefully you’ll be one step closer to finding the answers you need. Let’s get started:
Firstly, when should you get a car title loan? There are lots of scenarios that might call for such a thing, but all of them have one thing in common—you need money, and you need it fast. You might need it to pay off a debt with an impending due date. You might need it for a one-time expense such as a wedding or funeral. You might need it to stay safe in an emergency. In every case, though, the expediency of a car title loan makes it an attractive choice for people who just can’t wait for the cash they need. Large companies like Embassy Loans will normally be able to get the loan money into your account in a matter of days following approval.
Okay, now when should you avoid getting a title loan? The answer to this is straightforward too: if you don’t know how to pay the loan back, don’t take it out—unless you’re okay with losing your vehicle. That’s because a title loan is basically borrowing against your car. If you don’t pay it back in time, the loan company can take your car and do whatever they want with it. So, if you don’t want that to happen, you need to have a repayment strategy in place.
When taking out a car title loan, look out for the following: the amount of time you’ll have to repay the loan, the sum of money you’ll be getting (dependent on the appraisal) and the interest rate. Always make sure to read the fine print in your contract. You’ll also want to make sure you have supporting documentation to prove you own the vehicle. Without that, you won’t even be able to get approved.
Above all, remember this: know where your next paycheck is coming from and when it will arrive. If you’re sure the money you need to repay the loan in time is on its way, a car title loan could be just what you need to tide you over until it arrives.