When considering if taking a car title loan is the one for you, then it is essential to know if you’re qualified. While numerous lenders have different set of criteria to be met for qualifications, they mostly prioritize on clients who have a clear car title, a stable and reliable income, a valid driver’s license and proof of insurance for bigger loans.
So long as you have a car, it is very easy to qualify for this loan. Numerous people love this product because it’s easy to understand and also, it gives them access to quick cash. In earlier times, getting access to credits using car is a strange way to do. Because what they prefer most are the mainstream methods which are very popular and well known.
Of course, there are risks associated with these types of loans. Obviously, the biggest risks that you must understand is, if you can’t pay the loan on time, you’re risking to have it repossessed. This is something that the borrower or the lender don’t want to happen. It is vital to not borrow more than what your money can afford. Interest rate is so high and it can add up quickly. To some, a better option here is to sell their current car and buy a less expensive vehicle. Yes it’s true that this option is possible but it can be time consuming too.
In the event that you fall behind on payments or will be late, make sure to inform the lender ASAP. Similar to everyone else, lenders don’t like surprises most especially if it’s associated with bad news. A mistake that most people make is, trying to avoid this awkward situation. But doing this will only send a negative message to your car title lender. Lenders will perceive this as if you don’t want to make payments or you are trying to run away from them. Actually, this is a huge risk on their part and if you are being unresponsive with their texts or calls, then they might move quickly to repossess your vehicle.
Most lenders don’t like to repossesses their client’s vehicle as much as possible. So better yet, try to explain them your predicament and discuss with a payment plan. Through this, you will be able to avoid your car from repossession and also, settle issues from the lender.
Car title loans are perfect if you want to manage your cash flow but it has risks. You should understand how this works to guarantee a smooth sail.