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.