In Utah, title loans are notorious in the lending industry. Most consumer watchdogs discourage people against these facilities because of the steep rates lenders tend to offer.
While some warnings are in touch with reality, others are simply misguided assumptions unfairly thrown to providers of car title loan in Salt Lake City, Provo, Sandy, and other major areas. Surrendering your vehicle until everything’s repaid, making do with inflexible terms, and waiting long to access the funds are only some of the biggest misconceptions.
As a consumer, it’s hard to know what you should actually believe. Instead of helping you become a smart borrower, all you’re being fed are baseless pieces of information that couldn’t be more wrong.
If you’re planning to get a title loan to access instant cash for your urgent needs, here are three important things you must really think about:
Consider Better Options Firsts
No title loan provider would lie to your face that it’s the best financing product out there. Compared to the rates traditional lenders offer, a car title loan obviously caters to people that are out of less costly and risky options just to get money immediately.
In short, it’s usually your last resort. Logic tells you to think if there’s any source of funds without interest available to you and try your luck to borrow money the conventional way first before applying for a title loan.
Ask about Every Applicable Fee
If a title loan is last hope, it’s no excuse not to do your due diligence right from the start. Like other forms of financing, this loan involves certain fees payable under certain circumstances, Utah Money Center reminds.
You should inquire about the APR, the interest rate, and other costs you might incur at some point. Otherwise, payment shock is a huge possibility.
Find Out the Worst Possible Scenarios
Even if you’re confident you can maintain your payments on time, you must have an idea what would happen if things don’t go as planned. Apart from knowing the consequences if you’re unable to repay, you must likewise ask about how soon you must pay.
Only your complete knowledge of the terms and conditions could keep you from being penalized, thus, prevent repossession.
All loans involve a particular level of risk. Even if there’s a major guarantee at stake, you’re in good hands if you’re prudent enough.