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.
Personal Loans, Title Loans and Cash Advances
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 LoansA 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 LoansTitle 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 AdvancesThese 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 LoansReal 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.
Lender Factors to Consider
Making the decision to borrow money is never easy, and deciding who to borrow it from can also present some challenges. This is often the case when looking for a car title loan – at Loans for Less, we understand that you have to investigate your options. What are some of the questions you should be asking yourself (or a third party) about a company you’re considering using for a title loan? Here are a few of the big ones.
Is the Company Stable?You’re using your car title as security for a loan, and as such, you should make sure the company in question is stable enough to enter into that kind of relationship. Certain shady dealers might flip in and out of business – look for a group like Loans for Less with an extensive history, and stability to back it up. We’ve been loaning money for over 19 years, with a great reputation.
Is the Company Licensed and Insured?States that allow title loans have strict guidelines to ensure that providers keep your rights protected. There are also guidelines in place for loan processing times. Make sure you look for a company that has these proper licenses within your state and municipality, or risk major issues with your loan.
Are Loan Thresholds High Enough?Different lenders will have different guidelines for how much they can loan, or how much they might be willing to loan in your individual situation. You may have to borrow from multiple sources in some cases, but if you find one lender with high enough thresholds, this might not be the case.
Will I Qualify?Down similar lines, different lenders have different approval guidelines. Some require specific forms of income or credit, but most don’t. Find a lender that’s flexible enough to meet your needs. To learn more about the factors to look for in a lender, or for more information on car title loans, speak to the brokers at Loans for Less today.
Factors Involved in Title Loan Amount
A car title loan is one of the quickest ways to open up a little extra financial flexibility, so naturally, the precise amount you’ll be able to get from a title loan is a paramount factor. At Loans for Less, we loan up to 50 percent more with rates up to 70 percent less than the competition. What are some of the key factors that will influence the amounts you might receive from a title loan? Here are a few of the most prominent.
Clear TitleFirst and foremost, you need a clear car title to obtain a title loan. This is a relatively minor requirement compared to many other loans – title loans don’t require credit checks or several of the other thresholds you’ll normally have to stay on top of. You’ll usually have to show a pay stub to prove income, and little more.
Vehicle ValueYour vehicle’s value will be the largest single factor in a title loan’s value as long as your title is clean. Most lenders use the Kelley Blue Book value to determine the current fair market value of your vehicle.
Percentage of Value OfferedHowever, be aware that this does not mean you can borrow up to the full value of your vehicle on the loan. Lenders will typically only offer a percentage of the vehicle – usually between 50 and 55 percent in most cases. If you have a vehicle worth $5,000, you’ll likely only be offered a loan for around $2,500. The average loan amount for title loans nationwide ranges between $600 and $2,500.
State RestrictionsTitle loans are not available in all states – there are over 20 states, in fact, who do not allow these loans. Those that do, including Utah, may place various restrictions or limitations on these loans, including fees or interest rate limits. Make sure you’re well aware of these before proceeding. For more information on title loans, speak to the brokers at Loans for Less today.
Using Title Loans to Rebuild Credit
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 PaymentsThe 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 PrincipalIf 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 PlanTaking 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.
Common Uses of Personal Loans
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 PayoffThe 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 ExpensesIf 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 EventLarge 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 EmergenciesVarious 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.
Big Questions to Ask Before a Title Loan
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.
Important Questions to Ask During the Title Loan Process
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.
Common Title Loan Mistakes
For many people in need of a bit of quick cash, car title loans are the perfect way to go. A title or personal loan is a great way to get a quick bit of financial flexibility. At Easy Title Loans, we’re here to get you the best rates and the most hassle-free access to this quick relief. At the same time, we have to caution our clients against rash decisions – there are a few big mistakes you can make in the title loan game which can turn out very badly for your finances. Let’s look at a few of the most common.
Loan You Can’t RepayIt sounds obvious, but many folks simply don’t think a title loan situation through before entering into one. Some simply assume they’ll have more money later on, but don’t really think about how that will ever happen. In some other situations, borrowers are lured in to a ridiculously high interest situation which makes repayment very difficult. Pay attention to exactly the deal you’re entering, and don’t bite off more than you can chew – remember that your vehicle is up for collateral here, and you could lose it if you can’t repay the loan in time.
To Pay Another Title LoanIt may seem simple to take out a second title loan to repay the first if the deadline is coming up, but this is a vicious and eventually painful cycle. Before long, you’ll have multiple lenders blowing up your phone and knocking on your door. Many people who attempt to pay loans using other loans quickly end up in bankruptcy. With car title loans, only ever take out one at a time.
No ResearchMany people do very little research with a title loan, simply looking for that quick cash. This can be a huge mistake – as we mentioned above, you could get duped into a huge interest situation, or something similar. Different states have different laws for title loans, and you need to be up to speed on these. Most of all, you need to research reputable vendors and favor their services wherever possible. We’re one of these at Easy Title Loans, and we’re here to serve all your title loan needs. Speak to one of our brokers today to learn more.
Tips for Keeping Car Resale Value High
When applying for a car title loan, the quality level of your vehicle is a very important factor. You’re borrowing money using your car as collateral against the loan, so every dollar of extra value on the vehicle is another dollar you might be able to get in your loan. There are certainly other factors involved in this process, but the value of your car is one you have a good amount of control over. Here are a few tips for maximizing the value of your car before putting it up for a title loan.