You have probably received more than one email or piece of mail telling you that a quick cash loan awaits you. Among the offerings could be one of the fastest available cash loans – a car title loan. And if you’re interested in securing one, it’s best to learn as much as you can about the car title loan as well as the quick cash you’ll be receiving.
The fact is, consumers make title loan mistakes every day of the week, most of the time because they are in a hurry to receive the money they need. Unfortunately, all of these title loan mistakes can have a negative effect. Read on to understand seven of the most common title loan mistakes, so that you can avoid them and let your car title loan be the financial solution you’ve been looking for.
How Title Loans Work
Georgia has several car title loan companies that offer you temporary financial solutions to some of your most pressing and unexpected financial needs. The criteria to receiving an auto title loan in Georgia include but aren’t limited to:
- You must be 18 years of age
- You must have a valid state driver’s license
- You must have a vehicle (lien-free) title
Because a car title loan uses your car title as collateral, a credit report or verifiable income source isn’t needed most of the time. Best of all, the entire loan process can take just thirty minutes or less.
Title Loan Mistakes
Because the process for title loans is generally extremely user-friendly and fast, it’s easy to overlook some important items. That’s why it’s always essential to do the necessary research on car title loans so that it works in your favor. Here are seven common title loan mistakes that you should avoid:
1. Borrowing More Money Than You Need
If you face an unexpected financial challenge, you can often find the money you need through a car title loan. But one of the most common mistakes people make is to ask for or accept more money than they really need. Ultimately, this can make the repayment amount and the interest higher than many people can manage. Only borrow what you need!
2. Not Understanding the Contract
Many people are so ready to receive the cash they need, that they ignore the important details of the car title loan contract. The contract means everything, as it sets your due dates and interest amounts, as well as other relevant details. You want to be sure to understand the amount of your payment and the amount of interest that will accrue, so that you’re absolutely certain you can handle the costs. Read and understand your contract!
3. Not Having Access to the Car Title Loan Agreement
Even if you have done a thorough review of the agreement and clearly understand the car title loan terms, if you leave without a copy of the paperwork or without access to the agreement in electronic format, then you’ve left yourself open to misunderstanding or confusion. The legal information contained within any loan agreement that is in your name is essential to have in your possession, so you can review the relevant details if a question arises. Be sure you have your title loan agreement!
4. Not Understanding the Payment Obligations or Missing The Car Title Loan Repayment Dates
It’s essential that you start to repay your car title loan on or before the first due date. Installment payments are usually made with cash or automatic deductions from a checking account. If you miss one or more of your loan payment obligations, you leave yourself open to the possibility of the car title loan holder putting the loan into default. Once your loan is in default, you risk being charged additional interest or penalties. Be sure you fully understand your payment obligations!
5. Turning a Short-Term Loan Financial Solution Into a Long-Term Debt Burden
Sometimes consumers will take out additional auto title loans each time they need more money. But by the time a consumer has four or five loans, the fees and interest can add up and result in a significant debt burden. At that point, instead of the loan helping the consumer with their financial concerns, it becomes a debt-laden burden that the consumer cannot realistically pay back. Only borrow what you can pay back and avoid taking out more than one car title loan at a time!
6. Allowing The Car Loan Title Holder To Repossess Your Automobile
If you start missing payments on your car title loan, this can result in additional penalties or fees, and even the loss of your automobile. By not paying the loan, the interest, or the penalty fees, you can fall into arrears and your vehicle could legally become the property of the title loan company. Don’t miss your payments!
7. Failing to Research Car Title Loan Options
Because receiving a car title loan is a relatively easy process, it’s common for people to not research multiple companies to find the best company for them. Just because you understand the contract and can repay the title loan, doesn’t mean that just any car title loan will match your need. With a little time and effort, you can find a title loan company that best meets your economic challenges.
Title Loans Can Help You With Unexpected Financial Challenges
You can often find out all you need to know about a title loan provider by their reputation and how well they treat you. Reputable car title loan companies will have friendly, knowledgable lawn specialists, and a process that is explained to you in detail.
Most loan specialists will share some of these common title loan mistakes in an effort to help you avoid them. When you’re ready to ease your unexpected financial burden by applying for a car title loan, reach out to Georgia Title Loans today.
Georgia Title Loans provides the expertise you need, along with the title loan funding you desire.