17 Aug 2018   /   0 comments

10 Things to Think About Before You Get A Car Title Loan

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It is not a new thing that emergencies can overwhelm anyone at any point of their lifetime, leaving them in situations where theyneed fast cash. Sadly, most individuals do not have savings kept somewhere or anywhere to deal with these emergencies. Friends, family members and well-wishers may not even be able to assist in such times. For this reason, car title loans exist.

A title loan will in its design offer this crop of individuals access to fast cash to deal with the financial crises they have found themselves in as well as to provide them with a plan to gradually pay off these loans. Usually, these individuals get to benefit from a title loan since it gives more money than a personal loan. More so, even with bad credit you can still be a beneficiary.

Car title loans gives fast and easy access to quick cash since virtually every transaction involved may be done from the confines of your bedroom or while you are on-the-go. It is also important to note that when you can’t pay off your debts or you failto stick to the terms of the contract, you may lose your vehicle to repossession as well as adding negative reports to your credit file.

Here are ten things you will have to consider before getting a car loan.

1. How do I Repay the Loan?

Just as getting the loan is important to you, so is repaying the loan important to the lender. Every lender needs assurance that you can actually repay the loan that you have been given. 

Before you think of getting a loan, you must be certain that you can repay it. However, this certainty must be equally matched with evidences that you have the means to service the loan until you completely pay off the car title loan. Lenders cannot give you loan on the basis that you have a certain amount of money you are expecting as a gift or hand-out from a willing mind.

Even with a monthly earning, you still have other financial commitments that maybe unnegotiable. So, while you are anxious to get the emergency settled, you must try to design a plan that will enable you to repay the loan.

Having a well-designed plan enables you to understand how the loan will fit into your budget. It enables you to know better how much you can keep aside for the loan on a monthly basis and by doing so; it gives you a realistic value of how much you can conveniently cater for. When you eventually walk to a lender, you already know how much you can qualify for.

And as you try to figure out how to repay the loan, your focus should also be on the duration of the title loan.

2. How urgent is this expense?

To properly answer the question, you must be able to define what urgent is to you. A matter may be an urgent one with one person but then, a trivial matter with another person. Be it as it may, the urgency of the expense is paramount in taking the decision to get a title loan. There should be a justification why you will have to risk the possibility of losing your wheels upon default.

An expense is not urgent when you need money to attend a certain party that your life does not depend on. A matter is not urgent when maybe you need to get a new phone because your present phone is having issues. Of course, you know that can wait. It is not an urgent one when you need to make an expensive trip for a wedding. As long as you do not die or suffer unbearably when you cannot meet this need, the matter is not urgent.

It only becomes a matter of urgency when you should be undergoing a major operation and there is lack of fund. An expense is urgent when you cannot get drugs necessary to facilitate a healing process. A matter of urgency is when you have to miss out of an important exam as a result of failure to pay tuition fees, or you have to incur unpaid bills and by so doing denying yourself of certain necessities for work.

Remember when the matter makes you suffer unbearably or you may die from it if it is not handled, then the matter is urgent. On this ground, title loans become a source of emergency cash for you. However, you must talk things properly with the lender so as you understand your rights and responsibilities as it concerns a title loan to ensure that you do not lose your car to repossession.

3. Are there other Options?

Before turning to title loans, it is necessary to have tried other options. If you have rich uncles and aunts or friends who can help you, it is not a bad idea to meet them for assistance. You are sure of getting the loan from them at zero interest rate and when you do not get it for free, the interest rates will never be as outrageous as that of title loans.

Sometimes, most people hate the thoughts of asking for assistance but then it is cheaper than what a title loan will offer you. You may just have to swallow your pride and ask if it is possible. You may never come to terms with the fact that you paid a whopping $4,000 for $1,000 loan.

When the emergency revolves around health issues, you can seek the advice of your health provider. They may have a scheme that can take care of a situation like yours. Most practitioners usually do. You may end up getting this treatment for free or at a fairly subsidised rate.

You may want to give other expensive assets you may have as collateral rather than getting a title loan and risk the chances of losing your car. Wrist watches, necklaces, and other items can take the risk for you. If you lose your car, which is a possibility when you fail to repay or default, you eventually suffer from the hardship of transporting yourself with ease.

Since most credit unions may also provide the services of offering short-term credits, you may wish to contact them as they offer these services in relatively reasonably interest rates even to individuals with bad credit. You will be shock to see how effective they may be.

Sourcing for other options before settling for a car title loan is a good practise. You should think about it before you get involved in a title loan and then you keep having roll overs when you can no meet up with the terms agreed.When there are no options available, a car title loan is a sure bet. You must however, find the right lender to ensure that you are able to repay without losing your vehicle.

4. Interest Rates (APR)

The APR refers to the Annual Percentage Rate. It is the annual rate charged on a loan. Usually the annual rate shows the actual cost of a loan and is expressed as a percentage.Since the annual percentage rate shows the actual cost of the loan, thereby showing how expensive a particular title loan is compared to others.

As you move from one lender to another, the interest rate differs. It is these differences that set lenders apart. Even when the pressure becomes too high, it is necessary for you to consider how the different interest rates affect the entire loan. Choosing a lender whose Annual Percentage Rate (APR) is convenient for your budget is highly advised. 

This is where TFC Title loan stands out. With our lower and competitive rates, we are simply the beat choice for you. Car title loans may be expensive with our competitors, but with us, you’reat an advantage.

5. What kind of Cars does the Lender Accept?

A prerequisite to qualifying for a car loan is that you must own a car or equity on the vehicle. By owning a car, we mean that the vehicle title is in your name. Some lenders prefer that your car is of a more recent built and model while some others do not accept older or classic cars at all.This is an important information you must find out before you process to geta car title loan.

At TFC Title Loans, we believe that the age of the car does not entirely tell how roadworthy the car could be. Your car or vehicle could be older than 10 years and still have some good mileage left in it. We can offer you a title loan irrespective of the age or model of the car. We can also give you a title loan on your vintage or classic car. Provided the car is still of some value, we will get you funded.

Is There Any Hidden Charge or Penalty?

Most lenders do explicitly state clauses that attract penaltiesin the contract terms. Some charge you for application and processing your application, while others offer you an initial quote at a fee. Also, to some lender, prepayment is a loss, so they penalize you if you attempt to clear the payments all at once.

But with TFC Title Loans, getting a car title loan comes with no additional or hidden charge. The initial quote issue to you is completely free and there is no prepayment penalty.

6. When can I conveniently repay the Loan?

It is good to know when you can conveniently see off a loan term. This will enable you to be prepared for the days ahead when you may need to make a balloon payment to keep your car.You should choose a lender that will allow you to negotiate the loan terms to find a convenient loan term that works well with your budget.

Most title lenders are predatory and will not give you the opportunity to negotiate the loan term with them. Some lenders even permitrolling over the principal amount, allowing you to pay only the interests. While this may sound enticing, you might eventually end up trapped in a cycle of debts.

TFC Title Loan does not have a rollover policy. Instead, we offer you the title loan over a period of 24-36 months and an option to pay off all the loan at once without any penalty.

7. What Payment Options do you have?

There are several payment options that are accepted today by title loan lenders, ranging from paying in person or online to paying directly from your paycheck.

While some prioritize one above others and totally restrict their client from using other payment options, others will prefer to allow their clients use whatever payment option is convenient for them. Before putting pen to paper on a loan contract, ask questions to know what is expected of you by your lender.

That’s he beauty of getting an auto title loan from TFC Title Loan. You are given the freedom to choose whichever payment option is most convenient for you – no limitations whatsoever.

8. Do I need Good Credit?

Car title loans do not require you to have perfect credit score, contrary to what will be required by traditional financial lending institutions. Usually, most title loans do not require credit checks but watch out for high Annual Percentage Rates (APRs) when your credit is bad.

Since title loans are secured loans, they do not depend on your credit status; rather they depend on the mileage left on your car or the equity left on your car. Title loans welcome people of different credit status. In most cases, when you are diligent and dutiful in the payment of the loan, car title loan enable you to build your credit. With TFC Title Loan, you will get a car title loan no matter your credit status – good, poor or bad credit.

9. Are they Professionals?

Some lenders are just getting into the business and do not really have as much experiencethatother title loan lenders may pride themselves in. If you are new to the title loan business, this crop of title lenders will not be safe for you.

When you seek a title lender, you have to approach a lender that has reputation and a team of professionals that will guide you into getting a loan that will be convenient for your budget.

At TFC Title Loans, having been in the title loan business for over two decades now, we have a team of experienced title loan experts that are committed to seeing you get the best out of your car through a car title loan.

10. How much do I Qualify for?

As you move from one lender to another, this factor does not remain constant. It is advisable to check if your chosen lender can afford the loan you actually want.TFC Title Loans can offer you more money than any other auto title loan lender; as much as $50,000 and as small as $2,550. However, this is dependent on a number of factors.

  • The mileage on your car or vehicle
  • The overall body condition of your vehicle
  • The equity you own on your vehicle
  • Your monthly income and how much you can comfortably afford

These factors are major indices in deciding how much you can go home with when you apply for a car title loan.

You don’t have to remain in misery over the fact that you are broke and can get access to money fast. Get a car title loan today, but ensure that you consider all of the above in your search for a lender you can actually work with. And when you do, you’ll find out that TFC Title Loans is the best car title koan company for you.

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