Navigating Title Loans Responsibly

For a number of different potential reasons, you may find yourself and your family in a tough financial situation that requires a short-term cash infusion. One of your best options in this situation? Affordable title loans from a reputable company like Utah Money Center.

Our car title loans are a great, easy-to-obtain form of financing that are perfect for filling a short-term gap for a variety of reasons. As title loans come with higher interest rates and faster repayment periods, however, it takes a little care to ensure you don’t use them irresponsibly. With that in mind, here are three tips to help you manage a title loan properly.

Know Your Lender, Know Your Terms

When searching for a title loan in Utah, it’s important to only consider reputable providers of these loans like us. Unfortunately, this is a marketplace that does contain some unsavory characters who may try to take advantage of folks in a rough financial situation.

In addition, it’s vital to carefully understand the terms and specifics involved in your loan. Know exactly when payments are due, the penalties for missing payments or going overdue, and other important details. The last thing you want is to be surprised down the line by some fine print you didn’t take the time to read.

Lower Interest Rate Circumstances

As we noted above, title loans do generally come with higher interest rates than standard loans. However, there are a couple situations where you can get a lower interest rate on a title loan: Two good examples are directly following a divorce, or directly following a recent unemployment. In these situations, creditors may offer more leeway.

It’s important, however, to be careful here. Just because you have been extended a lower rate than you had expected doesn’t mean you should go crazy and borrow a huge amount you don’t really need – know your limitations and stick only to an amount you truly need.

On-Time Payments

Maybe the single most important factor in staying financially responsible with a title loan is paying on time. Set out a plan in advance for how you’ll meet all your due dates without being late on any of them, as delays in payment can cause penalties or even the repossession of your vehicle.

For more on navigating a title loan responsibly, or to learn about any of our car title loans available, speak to the pros at Utah Money Center today.