For people in need of a bit of brief financial flexibility, car title loans are often the way to go. At Loans for Less, our simple title loans allow you to walk out with that extra cash you needed with limited hassle. What are some factors you should be considering as you search for a title loan? These loans aren’t without risk, and the right considerations can go a long way. Here are some tips for important factors to keep in mind.

Annual Interest Rate

Most title loan interest rates will be calculated on a monthly basis, but this likely won’t line up with other forms of debt you’ve had in the past. Most of these areas use yearly interest rates due to the longer lengths of their loan. This confusion can be costly if you get it wrong. A credit card with a 20 percent interest rate yearly isn’t so bad, but a title loan with a monthly interest rate at the same level will have much higher payments. Make sure you’re aware of which rate is being referenced before you sign anything.

Forced Arbitration

Some title loan lenders are less than reputable, and these folks will often require forced arbitration clauses – these remove your right to take any complaints or disputes from the loan in front of a judge. If a lender is confident in their ethical practices, there should be no reason they require this kind of clause.

Fees and Early Repayment

There may be other fees involved besides your interest rate, including insurance coverage in some cases. You could see origination fees, lien fees, processing fees and many others. Some may even charge a repossession fee in cases where repossession is necessary, even though such a fee isn’t even legal. Get all these details in advance, and in writing. In addition, find out what the lender’s policy on early repayment is. Some lenders will require additional payments if you finish the loan too early – this is to preserve the profits they would have seen from interest otherwise. But not all do, and if you think paying back early might be possible, be sure to confirm that it’s allowed without a penalty. Want to learn more about title loans, or any of our other loan programs? Speak to the pros at Loans for Less today.

There are several different short-term loans out there, and many people get confused between them. At Loans for Less, we offer everything from car title loans to personal loans to help you get that quick cash you need. What are the differences between personal loans, title loans and payday loans? Let’s look at each of these, plus clear up some common confusion from within the person loan realm.

Bogus Personal Loans

A common misconception is that a loan with no credit check and no collateral is a personal loan – this is incorrect, and in reality, this is a cash advance. We’ll discuss what both these options are in a moment.

Title Loans

Title loans, quite simply, are loans that allow you to borrow money for a short period of time using your vehicle as collateral. You sign over the title of the car at the time of the loan, though you’ll be allowed to continue driving it unless you fail to pay the loan back. There is no credit check required, and only minimal income verification. However, if you cannot pay the loan back appropriately, you risk repossession.

Payday Loans and Cash Advances

These are extremely short term loans, typically only a couple weeks. They require no credit checks or collateral, though on the flip side, they offer higher interest rates and fees.

Real Personal Loans

Real personal loans, also called unsecured loans or signature loans, come with interest rates ranging from 5 percent to about 30 percent, depending on credit. Terms range from 12 to 60 months, and the application requirements are stingier than for other types we’ve discussed – you complete an application, provide bank statements and pay stubs, and authorize the lender to view your credit report. Want to learn more about the different kind of short term loans we offer? Speak to the brokers at Loans for Less today.

Most people think of a car title loan as a great way to add a little momentary financial flexibility, but while this is absolutely a common use, it’s not the only one. Another popular use for title loans? Rebuilding credit. Credit is a vital part of any financial profile, and a high score is required for many kinds of conventional loans. Standards are relaxed for title loans, though, and this often offers the ability to use the funds from a title loan to bring a low credit score back up. How does this work, and which areas should you exercise caution in if you’re going this route? Let’s take a look.

Using it to Make Payments

The recent past is by far the most important time for a credit report, and using the funds from a title loan, you can make your recent history look a lot more impressive. A few large chunk payments toward big debts can raise your score almost immediately, and likely by more than you’d assume. There are even loan providers who allow you to pay back the borrowed money plus interest a year or two down the line – this gives you time to rebuild the credit score and get your finances in a good place before you pay it back. Now, let’s look at a few areas to be vary of if you choose to do this.

Cash Principal

If at all possible, try to avoid spending the cash principal – put it in a savings account for at least a brief period before using it, if you can. This will make your finances look better, which matters for a credit score. It will also make things easier on the repayment end.

Pay On Time!

Always pay back the borrowed amount on time, or even early if possible. You can roll a title loan over in most cases, but this will still require you to pay interest, which will only increase by the time you’re forced to finally pay.

Part of a Plan

Taking out a title loan is just one part of what should be a comprehensive plan for how you’ll rebuild your credit. It should include your credit report and the important factors therein, plus saving through whatever avenues possible to make payments and remove some debt. Consider altering expenses, and look for alternative sources of income wherever possible. Raising credit score isn’t necessarily easy, but with the right effort, you can make it happen. To learn more about car title loans or any of our services, speak to the experts at Loans for Less today.

Personal loans and car title loans are some of the quickest and easiest ways to get qualified borrowers the cash they need, but that doesn’t simply mean you’re a guarantee to be accepted for one. Different loans have different requirements, and there are situations where credit, derogatory marks or other factors could keep your personal loan application from being approved. What do you do if this happens to you? There are a few proper steps to take. Let’s have a look.

Credit Report

Credit might be one of the central reasons why your application was denied, but there can be errors in a given credit report that lowers your score to an unacceptable range. By law, you’re given 60 days after a credit report to request a free copy of the report, and the score the lender used to evaluate your creditworthiness. Look the report over closely for errors. Maybe a late payment was reported that you can prove never took place, or maybe an account you didn’t open appears on your credit report. If there’s any chance that incorrect reporting may have caused your denial for a loan, look into getting this remedied as soon as possible.

Credit Building

If your score is correct and credit was indeed the reason you were denied, it’s time to take steps to rebuild your credit. The credit report will come with “reason codes,” which are the most important factors impacting your score – they might tell you it’s time to focus on paying down debts, or they might indicate you need to apply for a new account. Through these and other smart financial methods, you can create a plan to raise your credit score back to where it needs to be.

Consider Alternatives

If you’re still badly in need of a short-term financial fix, you’ll have to consider other options besides a personal loan. A balance transfer credit card is beneficial to some people, and others find success within a reputable debt management program – you’ll pay a fee, but these services can help you reduce your overall debts much more quickly. To learn more about any element of title loans or personal loans, speak to the experts at Loans for Less today.

There are a few different specific designations within the world of personal loans and signature loans, and one such designation refers to installment loans. At Loans for Less, we offer a variety of installment loans for people who fit their criteria. What exactly is an installment loan, and how can it potentially benefit you? Let’s take a look.

Basic Definition

Put simply, an installment loan is a loan with a set number of scheduled payments over time. In reality, many of the most common conventional loan types on the market are installment loans – auto loans and mortgages, for instance. Credit cards are not an installment loan, as they require a monthly payment but don’t carry a set time period for payments.

Example

Within the personal loan sphere, installment loans take on a specific role. For instance, let’s say you’re looking to borrow $1,000 to help pay for a graduation party for a loved one. You take out an installment loan that spans 24 months, at a 25 percent interest rate. In this case, you’d receive a check for $1,000 up front, and then you’d make regular payments of $53.37 for 24 months – in the end, equating to a repayment of the $1,000 plus the appropriate interest.

Comparison to Payday Loans

In general, payday loans come for a shorter duration. They also have higher interest rates than installment loans, and can be paid back in a lump sum – often on the borrower’s next payday, hence the name of the loan. Installment loans, on the other hand, spread payments out evenly over a longer period of time.

Bad Credit Assistance

One of the primary uses for installment loans is building up credit. Credit bureaus want to see regular payments toward debts over time – because this is exactly the format required by installment loans, they’re a good way to build credit up quickly as long as you can make the monthly payments on time. Want to learn more about installment loans, or any of our signature or title loan options? The brokers at Loans for Less are standing by to assist you.

Life can bring many unexpected twists and turns, especially within the realm of finances. For people who might be in need of a little extra flexibility now and then for a variety of reasons, personal loans through a company like Loans for Less are a great option. What are some of these reasons that might cause a need for a personal loan? Here are a few of the most common.

Debt Consolidation or Payoff

The most common use of a personal loan is to consolidate outside debts. A lump payment can allow certain people to combine multiple debts into one more manageable payment, or to lower monthly payments so they can make payments at a level commensurate with what they have available. A personal loan can also be used to pay off credit cards, which can lead to a lower interest rate and create “light at the end of the tunnel” when it comes to an end-point for credit debt.

Home Remodeling or Moving Expenses

If you need to install a new roof, remodel your bathroom or add in an amenity like pool or a hot tub, a personal loan can be a great option – especially if you don’t currently have equity in your home and don’t want to get a home equity line of credit. Additionally, moving expenses are just the sort of one-time payments that can be perfect for a personal loan. Larger moves can be expensive, and particularly if they’re a move with a new job in mind, there might be a situation where cash funds are low right now, but will be on the upswing soon. This makes a temporary personal loan a great choice.

Personal Event

Large life events are another example of a great use for a personal loan. This might be a positive event like a wedding or a graduation, but it also could be a sudden and sad event like a funeral where funds are needed in short order.

Bills or Emergencies

Various bills, especially medical bills, may require immediate payments to avoid major additional expenses. Things like dental services, cosmetic surgery or fertility treatments can come with large cost attachments, and may come up as emergencies that cannot be avoided. A personal loan can be the simplest way to solve these temporary issues. Interested in learning more about personal loans, or about any of our title loan solutions? Talk to the brokers at Loans for Less today.

If you’ve just learned the basics of a personal loan, you may be wondering how it differs from a line of credit. Both options extend you the basic ability to add funds in an immediate sense, but there are a few big differences. At Loans for Less, we have all the best signature loans and personal loans available for your needs. These are generally perfect for one-time purchases or emergencies, where lines of credit can be better for ongoing purchases with an extended need for credit. Let’s look at a few of the other basic details here.

Disbursement Type

When you receive a personal loan, the entire sum of the loan is released to you in a single lump payment. This differs from a personal line of credit, which is reusable. Once you’ve been approved for a line of credit, you can continue accessing it into the future. Both areas can have major benefits depending on your situation.

Amounts

The minimum for most persona loans is $3,000, where it’s $5,000 for most lines of credit. Maximums can generally stretch larger for lines of credit, but this is mostly because of how far it can extend into the future. The max you can borrow in a personal loan situation will depend on factors like credit score.

Interest Rates

With a personal loan, you can often choose between fixed or variable interest rates – an important factor for many people. With lines of credit, only variable rates are allowed.

Secured or Unsecured

Secured loans are those backed by collateral, meaning they allow a higher borrowing amount and lower interest rates. Unsecured loans have faster approval processes, but borrowing amounts can be lower and rates will be higher. Both personal loans and lines of credit can be either secured or unsecured.

Repayment Options

With a personal loan, you can choose between weekly, bi-weekly and monthly payment formats. You’ll pay a combination of principal and interest. With lines of credit, you only pay interest on the amount you use – not the entire line of credit. However, every cent you borrow must be repaid by the end of the term, or you face harsh penalties. To learn more about personal loans, speak to the brokers at Loans for Less today.

At Loans for Less, our car title loan options are perfect for people in a variety of situations. Whether you need a little extra cash for an emergency, for a bulk purchase or for any other reason, our brokers can get you the perfect loan setup. We don’t pressure our clients into title loans, however, and we encourage everyone who comes through our doors to take careful financial stock before pulling the trigger. Here are a few important questions to ask yourself before taking out a title loan.

Do I Really Need It?

Title loans are great when you’re in true need of those extra funds, but if there’s any flexibility here, you should consider your situation. Interest rates are higher for title loans than most normal loans, which means your need has to be worth this additional risk. Will not having this money have legitimate, possibly severe effects on your daily life or a specific area of your life? If so, take the proper precautions and proceed. If not, perhaps consider some of your other options.

Other Options?

You should also stop to consider whether this is your only outlet for finding the funds you need. Again, your risk is high in a title loan – could you get that same money on a personal loan from a friend or family member? Could you consider contacting your credit union about a small-dollar loan for a better interest rate? These avenues aren’t always open, which is why title loans are here for you, but exploring them can’t hurt.

When Can I Pay It Back?

You also need to take realistic stock of your finances, and figure out when you’ll really be able to pay off the loan. Is it realistic for you to pay it in time, or could you be facing a massive balloon payment that you can’t afford just to keep your car under your name? Know your interest rate in advance, plus how often you’ll be able to roll the loan over if needed. Do all this math well in advance so you’re prepared for all financial realities. Want to learn more about any of our cash loans? Speak to the brokers at Loans for Less today.

Receiving a title loan is a less complex process than nearly any other type of loan, and at Loans for Less, we’re here to get you out the door with the cash and rate you need for your financial situation. Despite the process being simpler than many other kinds of loans, there are still several important questions you want to be asking as you get started. Here are a few of the most important things to be asking about, whether it’s a title loan, signature loan or personal loan.

What’s the Annual Interest Rate?

The typical rate on a title loan is 25 percent, but this is a monthly figure – it’s not the same as your credit card, which charges interest rates annually. This same monthly figure would equate to 300 percent annually. Title loans have higher interest rates than most other formats, so don’t allow yourself to be confused by the time period being used for the interest format.

What Fees Are Charged?

Some lenders will also charge additional fees on top of the interest rate, and others will require that you purchase loan insurance. Some may even try to charge repossession fees if this ever happens, even though this is illegal. Make sure you know well in advance what sort of fees you might be open to, and make sure they’re documented carefully.

Is There a Forced Arbitration Clause?

Because there are occasionally shady dealers in this industry, you need to be careful. A forced arbitration clause is a contract some lenders might try to get you to sign, and it will waive your right to take any disputes before a judge. If possible, try to never sign one of these agreements – you’ll be wide open to several unscrupulous practices.

What Are the Guidelines for Early Payments and Rolling Over?

Lenders want to make money, and the primary way they do this is through interest. For this reason, some may institute penalties for payments that come too early, before enough interest has been collected. If there’s any chance you’re planning to pay early, make sure this isn’t the case. In addition, find out the guidelines for if you’re behind on payments and need to roll over further. This will damage your credit and finances, but there are lenders who will work with you to limit the damage – while others might place a limit on how long or how often you can do this. Want to learn more about title loan questions to ask up front, or any other loan services? The brokers at Loans for Less are standing by.

No one takes out a loan without planning to pay it back, but as we all know, things happen. Maybe an emergency rears its head, or maybe you lose a source of income during your repayment of a title loan – at Loans for Less, we understand that not everything in life happens exactly as scheduled. Coming up late or short on car title loan payments can be damaging to finances, but there are a few options at your disposal for getting things paid off in an orderly fashion without getting into too much trouble. Here are some tips.

Paying it Off

By far the simplest and most preferable option, of course, is simply paying the loan back on time. Some lenders may drag their feet if you pay the loan off too early, so if this is a possibility, lay it out up front and find out what your options will be. In cases where you don’t have the funds immediately on hand, you could also look into selling the vehicle to free up cash flow.

Refinancing

Converting the title loan into a different kind of loan is another approach if you’re short on cash. If you qualify for a basic fixed loan from a bank, this will often come with a much lower interest rate and lower payments than your title loan – you can use the money to pay off the title loan and avoid the repossession of your vehicle. If you’re having trouble finding a good loan, visit smaller banks and credit unions.

Negotiation

There are many situations where your lender will work with you – they want the money to be repaid just as badly as you do, after all. You might be able to lower your payment in exchange for a longer loan term, or lower interest rate in exchange for other concessions. This may damage your credit in many cases, but that’s often preferable to getting your car repossessed.

Default and Bankruptcy

Defaulting on a loan is when you stop paying, and this is the last of your options – it will damage your credit and potentially lose you your car. There are situations where simply surrendering your car might be the best option. There are also situations where bankruptcy will get you some relief from certain title loan debts. Want to learn more about title loan repayment tactics, or any of our other services? Speak to the brokers at Loans for Less today.