Common Title Loan Mistakes to Avoid

Whether it’s a car title loan or a signature, loan, we’ve got you covered for your quick cash needs at Utah Money Center. Our brokers will help you find the perfect fit for you, plus advise you on any important hoops to jump through during the application process. These loans are simpler than most other kinds, but that doesn’t meant there aren’t a few traps you can fall into. Here are a few mistakes to avoid as you shop and apply for title or signature loans.

Thin Net

A common mistake many people make is not casting a wide enough net in their search for loan options. We know we offer the best rates at Utah Money Center, but chances are our competition makes those same guarantees – and only your own research can truly tell you which situation is best for you. Don’t just apply at your local neighborhood bank – both credit unions and online services like ours are often able to offer better rates because we’ve automated many of our processes.

Taking the First Offer

There’s often some wiggle room on interest rates and terms, and you should be willing to negotiate during this process. Don’t be ridiculous, of course – there are limits to how fa this can stretch.

Borrowing Too Much

Asking for more money than you really need is a recipe for disaster. Interest on these kinds of loans is significant, and this is because of their short-term nature. That makes the penalties if you don’t pay in full and on time more severe, including the potential loss of your vehicle. While this fast avenue to cash may seem tantalizing, don’t take it further than your direct needs.

Rushing

When it comes time to get a contract signed and get your cash, don’t rush through the details. Make sure you’re 100 percent clear on the terms of the loan, including maximum debt and interest amount. Understand the penalties if you miss or skip payments, and the length of the loan – plus whether you’ll be allowed to roll it over, and how many times this will be allowed. For more information on car loans or signature loans, speak to our brokers at Utah Money Center today.