4 Things to Do Before Getting a Title Loan

Most people will experience a time when they need some additional cash and are unable to get it through the more “traditional” lenders, such as banks or credit cards. When that does happen it’s important to know what options are available to help you secure the money you need to pay those emergency bills or make ends meet at the end of the month. One option that many people have discovered is a title loan in Utah. Before you go out and get a title loan, though, here are four things you should do first.

1: Identify What You Need

Getting into any kind of unnecessary debt is a bad idea, so before you go out and get a loan for the maximum amount you would be qualified to get based on the value of your car or other vehicle, it’s best to sit down and determine how much you will need. This allows you to avoid taking out a larger loan than you require, which would add to the debt you have to repay and could put you in a difficult financial situation down the road.

2: Understand the Repayment Terms

The next step is to make sure you clearly understand the repayment terms, and check that those terms fit with your own ability to repay the loan. Some title loans can be temporary, and might work in a situation where you know you have an influx of cash coming soon but need access to that money before it will arrive, while others will allow you to pay over a period of time, which would work better for someone who might need to pay a portion of the loan back out of each of the next several paychecks. You also want to make sure you understand how interest is calculated, how much that will add to your total obligation, and any fees that you might encounter, such as early repayment fees.

3: Set Up a Clear Repayment Schedule

One of the most important things about taking out a loan is being able to repay it. If you are unable to meet the payment requirements, it can cause a lot of financial trouble for you down the road. Instead, make sure that you have a clear repayment schedule and that you stick to it (as much as possible) to avoid additional fees, extra interest, and added costs for your title loan.

4: Get Your Paperwork Together

Title loans are easy to get, and offer an option that will allow you to access the cash you need quickly (usually in less than 24 hours), but they do require some paperwork. Getting it together before you go to apply for the loan can streamline the process. You may need some or all of the following:

  • A clear title for your vehicle that includes your name
  • A form of identification (driver’s license, passport, government photo ID, etc.)
  • Proof of income that would allow you to repay the loan
  • Title loan application
  • Banking information (such as a routing number and account number)

Utah Money Center wants to make sure that you have options when you need cash quickly, but before you show up to get a title loan, make sure you’ve taken these four steps so you’re prepared with the right paperwork and the right information to get the loan you need.