When an emergency strikes and you don’t have enough money to cover it, you can count on providers of title loans in Utah to help you out. Unlike conventional lenders, such service providers avail the money in matters of hours or days instead of weeks.
Some services will have the cash ready and dispatched in as little as 2 hours. In exchange, you must hand over the car title as collateral. Using your car as security carries an element of risk. It’s imperative that you don’t overreach as to minimize the risk of losing your property.
1. Don’t borrow more than you need to.
One of the most appealing factors about a title loan is that the lender isn’t bothered by the state of your finances. They won’t carry out a credit check when approving the loan. They only need to title of the car to be in your name and the vehicle to be in great shape, and you’re halfway there.
Naturally, they will only lend you a fraction of what the car is worth not the full amount. Most lenders keep the loan amounts at between 25 and 50 percent of the car’s value. The will also install a tracking device to ensure that they can track the vehicle should you default on payment.
Most people run into problems when they opt to borrow more money than they need. Just because the lender is willing to lend you more doesn’t mean that you should take it. For the best results, only borrow what you can afford to repay quickly.
2. Do the math.
Title loans come at a great cost to the borrowers as they carry high interest rates. The interest of a thirty-day loan can be as high as 25 percent, making them the most expensive form of financing on the market. Falling behind on payments attract hefty fines, late fees, and penalties.
Therefore, you need to crunch the numbers before heading down your local cash loans provider to know what you’re getting yourself into. It’s imperative that you shop around for the best rates while you’re at it. Getting a lower interest rate can save you a considerable amount of money.
You should know that such loans are only useful in the short term as they tend to get expensive. Therefore, make every effort to repay the loan on time and avoid rolling it over. Doing so renews the loan for another month at the same interest rate, and these figures can add up fast.
3. Do have a repayment plan.
For all you do, you need to prioritize repaying the loan. That means you need to come up with a repayment plan as you’re considering borrowing the money. That’s the only way to ensure that you don’t fall behind on payment and get saddled with expensive fines and penalties.
If you can’t pay off the loan from your regular paycheck, consider picking an extra shift at work or getting a second job. You to find a way to grow your income and pay off the loan. Consider throwing any extra dollar towards paying off the loan and avoid having it roll over.