Auto title loans had been receiving negative news coming from different sectors of society. There were allegations of high interest rates, unreasonable loan conditions, difficult to manage monthly amortizations, and many others. These things create an impression that brokers who accept car titles are not helping borrowers, instead they just want the car. Just the same, the allegations did not and will not discourage people to seek financial assistance from car title loans broker. For those who will avail of this service, it is expected for you not to do foolish things when seeking this type of loan.
1. Do not secure car title loans if you only need less than $500. There are thousands of online brokers for payday loans to secure the money. And, reasonable automobile title loans will definitely reject your application as it is a waste of time and they do not earn much from that amount. They will also suggest that you seek assistance from payday loan or cash advance online brokers instead.
2. Do not offer car title which is not yours. One of the requirements you should fulfill is presenting deed of sale and certificates of registration. If they won’t find your name in these documents, you will not only be rejected but perhaps you will be castigated for wasting their precious time. Another possible situation is that they might report you to authorities with allegations that you stole a car.
3. Do not offer junk. Before car title loan companies approve your desired loan amount, they will appraise the value of your car. They will estimate how much is the resale value so that they can earn from it should you fail to pay your loan. Thus, your automobile should be in good running condition and at the same time looks fairly new or not loaded with scratches, dents, and rusts in order to get good estimates.
4. Do not buy a new car after receiving loan money. It is a sign that you have another set of financial problems on top of the loan you secured from car loan companies. Besides, how are you going to drive both cars? The good thing about car loan companies is that you can still use your car until repayment time. So there is no reason for you to buy a new one using loan proceeds as equity or initial down payment.
5. Do not ignore other sources of credit. Because it is recognized as an expensive type of loan, it is recommended that you seek other loan sources which are cheaper and more affordable given your financial position. Do not be tempted with promise of huge cash with loans supported by your car title.
Auto title loans are not a bad thing. What is bad is that when you lack logical reason and sanity in seeking this type of loan. It is a good source of instant cash to help solve short term financial crisis. But, one should be careful as it can be expensive and you might end up in a car less situation and compound more problems as a result.