When it comes to your money, sometimes there can be some confusing information out there, and not being able to find the answers you need could affect your ability to get cash to help you get through emergency situations and times when your paycheck just won’t quite cover all the expenses you have in a month. Fortunately there are options available that can help you get that cash quickly, and it doesn’t mean you have to sell something valuable or pawn off your property. Title loans and credit could be an option, but before you seek out these types of loan, make sure you know all there is to know about them.
1: How does a car title loan work?
With car title loans, you use the equity you have in your vehicle as collateral to secure a loan. The good news is that you get to keep your vehicle and continue to drive it while you repay the loan, which means you won’t have to figure out how to get a ride to work every day. You simply give the lender the title to your vehicle and a set of keys, and then when the loan is repaid you’ll get those items back.
2: What happens if you don’t pay?
As with any loan, it’s important that you have a plan for repayment, otherwise your vehicle could be repossessed to pay outstanding debts. It’s important to talk to the lender about the interest rates and any fees or other costs associated with the loan so you’re fully aware of what you are signing up to repay before you sign over your car title.
3: How long does a car title loan last?
Most car title loans will range from 30 to 90 days, which means you can be free from your debt sooner than if you were to take out a traditional loan and pay for months or even years.
4: What if I have bad credit?
The great news with car title loans is that you generally don’t need to have a credit check, which means you can borrow even if you don’t have the best credit record. Generally these loans are not reported to credit bureaus, which means you don’t need to worry about a ding in your credit report when you take out the loan either.
5: Does my car need to be paid off?
While you don’t necessarily need to have your car paid off entirely, you will only be able to borrow against the equity you have in the vehicle, which means if you owe a significant portion of the car’s value to the bank or other lender still, there’s not much wiggle room for borrowing. Some car title lenders also won’t allow you to obtain a loan if you don’t have a certain portion of the vehicle paid off.
If you need to access cash quickly and don’t have any alternative options to get that cash, car title loans can be a way to get money right away without the hassle and time of getting a more traditional loan. Talk to a car title loan company such as Utah Money Center today to find out more.