Avoid Making Mistakes when Applying for Auto Title Loans
If you have an emergency requirement for cash but you have bad credit, then you may find yourself turning to auto title loans. Before you decide to do this, however, you should understand just what these loans are and how you can get the most out of them.
How Do Auto Title Loans Work?
If you own a car outright, you can use the title deed as collateral. How much you will get for it depends on the vehicle’s value. Usually, you will be able to borrow no more than 50% of that value. In most cases, you must own the vehicle outright. If there is still a little bit of finance outstanding on it, you may still be considered, but then the amount you still owe will be deducted from the value of the vehicle.
In most cases, no credit check will be performed with this type of loan, as you offer your vehicle as security. Naturally, you will also have to pay interest on your loan, and the interest rate can be very high. Different lenders have different rates, so make sure you shop around.
Also, if you are looking for the best auto title loans Texas has to offer, you have to make sure you know that you can pay it back. This is not the type of loan that you could feasibly default on, as your vehicle will be taken away from you. Hence, do check whether other financial products are also available to you that may be less taxing on your disposable income.
Avoid Costly Mistakes
As you are looking for the best car title loans Houston has to offer, you need to look for a company that has a really good reputation. You must be able to see that they have helped people just like you. Always compare at least three different providers and ask for a copy of their loan papers so you can properly check them out.
You must also read the contract properly before signing it. Search for default clauses and extra fees. Have a good understanding of the various terms and conditions and check to make sure you meet the insurance requirements. Do also check that your vehicle is the only collateral they are requiring. This way, you won’t have any nasty surprises further down the road.
You must take the time to compare the market and look at which company offers the best rates and the best customer service. The financial services industry is heavily regulated, but there are still companies out there who do not follow the rules and simply hope that you believe the play by the rules simply because they can be found.
By being careful, exerting due diligence and checking available details, you should be able to find a car title loan that meets your specific needs. Always make sure that you can actually pay the loan back, so that you don’t find yourself in a situation where your vehicle is taken away from you, leaving you stranded.