5 Things About Auto Title Loans - What to Look Out For
When money is short and the bills are piling up
, it is normal to want to do whatever it takes to get your hands on some cash. If you are in this situation, your first thought is probably to try to find a way to make some extra money through doing odd jobs or putting in more hours at work. But what if you need cash fast - how can you get access to money within 24-48 hours?If you own a car, you might be interested in learning more about title loans. To qualify for auto title loans, what to look out for depends on your particular situation. Here are 5 things to look out for:
1. Auto title loans are high-interest loans for which you use your auto title as collateral:
Auto title loans are simply short-term personal loans that you can borrow from an auto title lender. You put your car up as collateral by signing over your auto title. Meaning that, during the duration of the loan period, the lender actually owns your car. Of course, once the loan is paid off, you get your car title signed back over to you.
These loans are high-interest. Because they are not credit cards, they are not limited by the state interest rate governance laws affecting credit cards (card loans usually top out around 29-33%). Even though interest rates can be sky-high, it shouldn't be too much of a worry due to the short repayment period (see below).
2. You can typically get funded within 24 hours:
Need funding fast? Good, because with this type of loan, you can get funded within 24-48 hours in most cases.
3. Loans are typically due back within 30 days:
It is important to note that repayment periods for this type of loan is usually around 30 days. This is a good because it keeps your interest payments lower than if you were to take out the loan for 3-6 months or more.
4. Check the paperwork carefully before signing:
As with any type of loan, take the time to carefully read the fine print. In particular, note the terms such as the repayment period, interest rate, and what the penalties are if you fail to make your payment.
5. Make sure you understand the full amount due at repayment:
Before you sign off on the loan, double-check with the lender just how much you will owe them at the end of the loan term. Get it in writing.
Look out for these 5 things as you look for the right auto title loan lender. And, make sure to shop around with at least 3-5 lenders to make sure you get the lowest interest rate possible.
5 Things About Auto Title Loans - What to Look Out For
By: Robbie James