3 Things To Know About Title Loans
Before you head over to a title loan company and start signing legal documents, you will want to make sure that you are aware of what to expect. This way, you can not only get the most that you can from the title loan, but you will understand your responsibilities as well. Here are three of the things that you want to know about this type of personal loan:
Your Vehicle Must Be Paid Off
A title loan results in the lender holding the title to your vehicle. It is returned to you once you have paid off the loan in full. Therefore, if you have a lien on the vehicle, then you do not hold a clear title to it. The title loan company needs to be the only lien holder on the vehicle so only bring a vehicle and its title to them that you own outright.
They Need To Evaluate The Vehicle
Even if you take a good title to the loan company, they also need access to the vehicle that the title is for. They will check how many miles are on the vehicle, the overall condition of the body, and the may ask you to turn it on and move it a little so they can see it working. They input the information that they gather about your vehicle and their system will give them the maximum amount that you can borrow. That amount is the amount you are given, but you will have to repay more because of the fees and interest payments.
The Quicker You Pay Them Off The Better
The title loans are meant to be short term solutions to unexpected financial problems. Most loan companies will explain that they prefer you to pay off your loan within a set number of weeks, but may extend the loan for additional fees. If you are unable to repay the loan, which can be more likely the longer you take to repay the company, the higher the chance of them repossessing your vehicle is. You will want to make sure that you are sure that you can handle the payment schedule provided by the title loan company before signing any documents.
Make sure that you are asking all questions that you have and thoroughly read over all documents that you are asked to sign. Get a copy of your title loan agreement and pay it back as soon as you can.
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