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.
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 OffBy 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.
RefinancingConverting 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.
NegotiationThere 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 BankruptcyDefaulting 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.
A big part of the appeal of car title loans and personal loans is their speedy nature. The ability to get quick cash for an emergency or other immediate expense is a big deal to many people, and at Easy Title Loans, we’re here to get you the best deal possible on a title loan while also respecting the demands on your time. For most people, this means following a basic, tried-and-tested step-by-step process to getting your title loan approved and ready to go. Let’s look at these basic steps to get you ready for your next application.
InspectionThe first step of any title loan process is the valuation of your vehicle as collateral, which mostly takes place through a basic inspection. All relevant value items will be examined by the lender’s technicians, from functionality to appearance. Just to save a bit of time, make sure in advance that the location you’re going to for a valuation accepts title loans for your make and model of vehicle – some may have restrictions.
ProcessingWhile your car is being inspected, you’ll fill out some brief paperwork to make your application official. This application will be considered, along with the value of your car and any other relevant factors – including your credit history, income situation and other financial elements.
Instant Lending DecisionOn the spot, you’ll be able to get your verdict. You’ll be told whether you’re approved or denied for a particular type of loan, and you’ll be told the maximum loan amount you’re eligible for based on the value of your car and other factors. This is the point where items like interest rate and loan term will be ironed out and finalized.
Signature, Drive AwayWhen the paperwork is signed and ready to go and the title has been appropriately transferred, that’s the end of it – you’re ready to drive off with your new cash and get back to your life. You’ll now have a repayment to consider, of course, but you’ve gotten yourself some of the speediest and easiest cash possible with little to no hassle. To learn more about our title loans or any of our other loan programs, speak to the brokers at Easy Title Loans today.
A title loan from Loans for Less can be a great way to get you or your family a little extra cash for a special need this time of year, but it’s important to remember that the loan process is both technical and detail-oriented. No one is requiring a PhD in rocket science to take one out, sure, but going in for a car title loan – or any kind of personal loan – totally unprepared is a recipe for financial disaster. A knowledge of basic terms is a great place to start. By knowing simple terminology and how to talk about your loan in the right way, you’ve already taken the first step toward getting the money you need without any hidden downsides. Here are a few common loan terms to be aware of:
CollateralCollateral in any loan is simply what you promise to give the lender if you end up unable to pay back the terms of your loan. In the case of car title loans, the vehicle is the collateral. Now, because of the relative ease in locating a car – it’s not like you’re going to hide it under the bed – this usually doesn’t mean you have to actually give up your car to your lender the moment you take out your loan. Some lenders may install GPS systems or other ways of tracking, but even this is rare. Normally, you’re simply at risk of having to give up your car only if you fail to repay your loan appropriately.
LienA lien is the legal document that makes the collateral the property of the lender. Effectively, the lender owns our car until you pay off the loan – though again, you’ll almost always be allowed to continue driving it.
DefaultingDefaulting on a loan means you broke the loan agreement: You skipped or were very late on a payment, or you simply stopped paying altogether. This is a bad word to be hearing if you’ve taken out a title loan, or any loan.
Principal/InterestThe principal is simply the original amount you borrowed from your lender, not including any interest or fees. Interest is the amount of extra money it costs you to borrow this money. Interest is determined by either annual percentage rate (APR) or, in cases where your term is shorter, monthly interest rate.
Balloon PaymentsBalloon payments are made at the end of the loan term, and can be larger because they’re comprised of both your remaining interest and your principal loan amount. In some payment structures, you can avoid balloon payments with proper planning.
Rolling OverRolling over involves taking another month on your loan after the original period. Most lenders are happy to restructure loans like this, though some will place a limit on how many times you can do it. Got the basics and ready to learn more? Our brokers at Loans for Less are standing by.
An auto title loan, or title loan, is a secured short-term loan that requires the borrower to put up a vehicle he owns as collateral. The borrower allows the lender to put a security interest on the vehicle’s title, which will be lifted as soon as the borrower completes payment of his loan. If the borrower fails, the lender can sell the former’s car to pay for the amount he owes.
It’s easy to get excited over something you’ve always wanted to buy, like that brand-new car, a one-of-a-kind designer evening dress, or the LED TV you “badly” need. When you don’t have the money, it’s even easier to get tempted to take out a personal loan just to acquire those coveted items.
In the event of an emergency, applying for car title loans is a good option to cover expenses, as Investopedia writer Reyna Gobel explains:
“How Car Title Loans Work If you were to take jewelry or other valuables to a pawn shop, an employee behind the counter would appraise your items and give you a loan based on what your items are believed to be worth worth. In this case, the pawn shop will lend you money and charge interest. If you don’t pay back the money within the agreed-upon time frame, you will forfeit your items. This is similar to how a car title loan works.”
There are certain situations where a household can be challenged by financial woes. The recession of more than five years ago has put a lot of families who had led comfortable lifestyles in a myriad of financial problems.
Certain occasions call for the need to take out loans. Title loans in Utah are some of the most popular options for cash-strapped individuals. In response to certain misconceptions about the practice, Vanderbilt University published an article that sheds light on the benefits of this loan product.