Understanding Financing Terms

3 Things To Do When Applying For A Title Loan

If you need to get your hands on some cash quick, a title loan is one way to secure some quick funds. Before you sign a deal for a title loan, see if there is a company that will accept your vehicle as collateral, know the value of the vehicle and make sure that the loan terms are something you can afford and live with. 

See What Vehicles They Accept 

The first thing that you need to do is find out what type of vehicles a title loan lender will accept as collateral for a cash loan. Most title loan lenders will only give you a cash loan if they feel that your bike or car has value to it. They may limit their title loans to vehicles that are over a certain cash value or to vehicles that were made before a certain year. Keep in mind that a title loan company is only going to give you the cash they need if they think they can make the money back by taking your vehicle if you fail to pay back the cash loan.

Know The Value Of Your Vehicle

Second, take some time to figure out what the value of your vehicle or motorcycle is. You can figure out the value of your vehicle by searching online. There are many service that will tell you the value of your car based on its make, model, year, mileage and other factors. 

Knowing the value of your vehicle will give you leverage when you talk with a title loan specialist. Knowing the value of your vehicle will allow you to ask for what your vehicle is worth and make sure that you are getting a fair deal with your title loan. 

Be Sure To Ask About Payment Terms

Third, make sure that you ask about payment terms. How long will the payments last? When do you have to pay them? What is the consequence for missing a payment? Are their any penalties for making payments early?

You want to make sure that the payment due date is on a date where you can afford to make the payment each month. If it is not, see if the title loan lender can set the payment on a different date more inline with when you get paid each month. Make sure that you can afford the monthly payment; if the monthly payment is too high and you can't afford to make it, don't take the loan or you will soon find yourself without a vehicle.

Also, make sure that if you get on top of things, and are able to pay the loan off faster, that there are no early payment penalties. You want to be able to reduce your debt quickly when needed without facing consequences. 

Before signing a title loan, really make sure that you can afford to add the loan payment into your budget. If you miss multiple payments, you risk loosing your vehicle since you put your vehicle up for collateral. For more information, contact companies like Tennessee Title Loan.