Within any loan borrowing situation, whether we’re talking a jumbo mortgage loan all the way to a car title loan, responsibility on the part of the borrower is important. This refers to paying back the loan amount in the required period of time, of course, but also refers to other areas, such as how the loan balance is applied and the approach you take to using it to benefit you.
At Utah Money Center, we’re proud to offer several options for those in a quick financial bind, including car title loans and signature loans. While these loans are often meant to help you make ends meet for a temporary period before being paid back, it’s still vital to borrow responsibly and take an intelligent approach to your application of loan funds. Here are a few important areas we can offer advice in when it comes to being responsible with your loan.
Purpose for Loan
For starters, especially when it comes to signature or car title loans that come with relatively quick repayment periods, it’s essential to have a distinct purpose for the loan amount. These are not the kinds of loans that should be taken out on a whim – they should be in response to some specific event or set of events that leaves you in need of some quick cash.
You should be able to identify exactly what the cash will be used for, and you should do your best to create a legitimate estimate of the funds needed for this purpose so you don’t borrow more or less than you actually need. This will prevent you from risking default or being forced to take out another separate loan.
Strategy You’re Taking
Not only should you have a purpose in mind for the money you’re borrowing, you should have a specific plan for how the funds will be utilized once you receive them. If you’re planning to apply the money in multiple areas, such as to cover bills or expenses, write out an itemized list including the exact amounts for each and when they’re due. From here, be sure to check them off when they are completed.
A few basic examples of areas where borrowers apply and utilize funds from signature or title loans:
- Consolidating balances: If you have several outstanding debts, one of these loan types can allow you to pay off several of them while consolidating them. Many of these loan types will come with lower interest rates than credit cards.
- Home investments: Another common purpose for signature or title loans is a home remodel or rebuilding project, such as a new roof, a new landscaping element or a finished basement.
- Credit score: In other cases, borrowers utilize these loans to help bolster their credit score. Taking such a loan and they repaying it on time can both establish a payment history and work toward improving your score for the future.
For more on borrowing responsibly in a signature or title loan situation, or to learn about any of our title or signature loan services, speak to the staff at Utah Money Center today.