How to choose Title Loans
Sunday, April 5th, 2009Title loans or pink slip loans are obtained by borrowing money against the equity in your car. Choosing a title loan should involve careful planning. These are the questions that you should ask yourself before deciding to apply:
- Do you own the car completely? – Obtaining a title loan requires that you hand over the title to your car while you are repaying the funds borrowed. You can continue to drive your vehicle, but if you do not repay the loan your car will be repossessed by the lender.
- What is your plan for repayment of the loan? – Title loans have a fixed period for you to pay back the funds borrowed. Assuming that you are strapped for cash, which is why you are taking out the loan in the first place, you need to have a plan in place to repay the loan. Otherwise you can get caught in the vicious cycle of taking out one loan to pay off another.
- Finally, how do you choose a reputable title lender? Most lenders offer their services online by having you fill out a short application located on their website. However, many title loan websites are simply a “middle man” and not directly affiliated with the title lender. They charge a fee for use of their services that will reflect in the amount of fees/repayment paid back by you!