3 Need to Know Facts About Title Loans

8 min read
3 Need to Know Facts About Title Loans

A car title loan can be a lifesaver if you are in need of quick cash. But these types of loans can also get you into big trouble if you don’t read the fine print. There are a few things you need to take into consideration before you sign on the dotted line. Remember, these loans are not for everyone.

 

Max Cash in Florida offers affordable title loans to qualified clients. Just simply fill out the application and submit it. You will get a response asap. Max Cash has helped over 1 million people nationwide. Call and speak with one of their friendly staff members today. They will do their best in streamlining the process. The lender will go over all the paperwork so you will have everything to make an informed decision. Just take everything into consideration before signing.

3 Need to Know Facts About Title Loans

Here are 3 things you should consider before entering into a contract:

 

  1. Do you have equity in your vehicle?

 

First of all, you are using your car as collateral. So, do you have equity in the car? Individuals who secure such loans should understand that loans range from $100 to $5,000. You are only getting anywhere between 25% to 50% of what the car is worth. In most cases, you will need to own the car outright and have a clear title. Additionally, the car should not have any liens against it. The lender will also require you to have proof of insurance and a driver’s license to show the car is yours. Once you sign the title over and get the loan, you will have about 30 days to pay the loan back. Once the vehicle is paid, you will get the title back.

3 Need to Know Facts About Title Loans

  1. There are very high fees with title loans

 

If you qualify for a title loan, you will get gouged, to say the least. Most of these loans come with a 25% finance charge. So, if you get a $1,000 loan you will have to pay $1,250 back in 30 days along with any other fees. Some lenders charge fees higher than that. Just keep in mind that the interest you pay on a title loan can be larger than what you would pay on a credit card. The good news is the lender has to make the APR of the loan available. This means they cannot quote you one number then change it later. It all needs to be spelled out upfront and on paper. This way you can compare interest rates and decide which title lender to go with.

 

  1. You could very well lose your vehicle

 

If you cannot pay back the loan along with the fee when it’s due, the balance will continue to roll over. For instance, you have a $1,000 loan with a $250 fee. If you cannot make payment when due, that loan would roll over with you owing another fee. This will continue to snowball to the point where it will become impossible to make payments. So now you have a huge loan with a boatload of fees and you’re facing repossession. At this point, you will find yourself in a deep hole scrambling around to find alternative forms of transportation.

3 Need to Know Facts About Title Loans

The bottom line is, you should find less expensive alternatives if you can. Fast money is not always the best route. See if you can get a signature personal loan. The only drawback with this is you may need a co-signer. Some credit unions offer “payday alternative loans.” These are not like the payday loans of the past that literally wiped out people’s accounts. The loans are far less expensive. The rate is high, but nowhere near the traditional ones of the past.

 

The last option is taking a credit card cash advance. The cash advance fee on a credit card can be as low as 5%. This makes it ideal if you need some quick money for bills. Only use a title loan as a last resort if there are no other options available. But you must also consider the consequences. These types of loans could very well lead you down the path to financial disaster if you fail to abide by the terms.

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