When considering if taking a car title loan is the one for you, then it is essential to know if you’re qualified. While there are lots of lenders that have several criteria for their qualifications, they do prioritize more on the clients who have a car, a clean car title, reliable income, valid driver’s license and for bigger loans, proof of insurance.
As you see, it is quite easy to qualify so long as you have a car. Numerous people love this product because it’s easy to understand and also, it gives them access to quick cash. Back in the days, people have not considering to use their car to get accessibility to credits. Because what they prefer most are the mainstream methods which are very popular and well known.
Of course, much like other types of loans, these too have risks. One of the biggest risks that you must know when you proceed with this transaction is, the possibility of having your car repossessed if you fail to pay the loan in time. Needless to say, this isn’t what either the borrower or lender wants. Better not borrow any amount of cash that you know you can’t afford to pay. Interest rate is so high and it can add up quickly. For others, the option they see is selling their car and just purchase a less expensive model. Yes it’s true that this option is possible but it can be time consuming too.
In case that you’ve fallen behind onto your payments or perhaps, going to be late, immediately inform the lender. 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. This message can give them an impression as if you will not be making payments on time or perhaps, you’re trying to leave town and run away from your responsibilities. 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.
Majority of the lenders don’t like repossessing their client’s vehicle. So better yet, explain your predicament and come up with a payment plan. This way, you can avoid having your car repossessed and at the same time, settled the issue from the lender.
Car title loans can be perfect in managing your cash flow but it comes with certain risks. You should understand how this works to guarantee a smooth sail.