Much controversy surrounds car title loans because it sometimes happens that someone does not go about the loan properly and gets in over their head. When making any decision – be it about a loan or anything else – one should make sure to understand the process first. You would not play a game of basketball unless you knew the basic rules first, would you?
Auto title loans are a wonderful resource to use in certain circumstances when you are racing against the clock to get money quickly or if you have bad credit holding you back from getting other types of loans. Even though you can apply for title loans online in many places, they are not for every circumstance.
We want to make sure our borrowers are safe and savvy ones, so we put together a small list of tips to help customers like you understand how to manage your vehicle title loan properly. Honestly, responsible borrowing does not take much effort, just a little information!
Pay back your loan as soon as possible
Even though it may seem ideal to have several years to pay off an auto title loan, it is better to pay it off within a few months. The sooner you pay off the loan, the better it is because then you do not have to drag out the repayment period. Interest rates go up the longer you wait, so it is in your best interest to pay the loan off within three months of taking it out.
When you pay off your loan quickly, you obtain your hefty loan amount without feeling burdened with repayments for longer than necessary. The point of getting this type of loan is to relieve your stress, so paying off the loan quickly is the best way to do that!
Only take out what you need
Let’s say you only need $1,000 to afford some last minute plane tickets to visit your family for the holidays and you qualify for $5,000 – try not to use more than you really need. You may be tempted to use the additional $4,000 to go on a weekend vacation after the holidays, but this is not in your best interest.
The more you take out with your title loan, the longer it will take to pay it back. The longer it takes to pay back your loan, the higher the interest rates will get.
So, when you get your $5,000, pay off the $4,000 right away when you collect your cash, then use the $1,000 for the plane tickets. This way, you will have smaller payments that you can manage more easily, and you will not get hit with increased interest rates.
If you cannot make a payment, contact the customer service team
One of the coolest perks about our title loans is that we offer a lot of leeway with our repayment plans. We understand the realities of the world and know that events might pop up making it difficult to make payments the way you thought you could.
If you find yourself falling short one month, do not wait to call the customer service team. They may be able to find a way to come up with solutions to your financial issues and make sure that you do not suffer any penalties for coming up short one month. Our goal is to help you, so we come up with reasonable solutions that everyone can be happy with.