Knowing if you’re qualified for a car title loan is very important. 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. There are lots of people who actually love this product because aside from being easy to understand, it lets them have access to quick cash too. Lots of people back in the days haven’t considered using their car as a way to get access to credits. It’s actually an odd way for them and this, resort to mainstream methods.
These kinds of loans don’t come without risks of course. Well, obviously, the biggest risks that you have to understand is that, if you can’t pay back the loan, you are risking of having the lender to repossess your car. Needless to say, the borrower or the lender doesn’t want any of this 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. For others, the option they see is selling their car and just purchase a less expensive model. While such option is possible, it’s time consuming.
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. As a matter of fact, this is one mistake that most people would want to avoid. With car title lenders on the other hand, this sends a negative message. 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. This is actually a huge risk on the lender’s part and if you’re unresponsive with their calls or texts, then they might move more quickly in repossessing your car.
Most lenders don’t like to repossesses their client’s vehicle as much as possible. So better yet, explain your predicament and come up 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 need to open your eyes and understand how it works to ensure that it will be a smooth sail for you.