Like other forms of “no credit check lending” products in the Beehive State, title loans have gained notoriety for offering high-interest rates. After all, lenders have a sensible reason to do this, considering the huge risk they’re running for opening the door to subprime borrowers. This doesn’t mean, though, that you’re ill-fated to pay an “unpayable” amount.
Honest title loan lenders would actually leave you with a debt that’s not impossible to repay in time. But you can’t rely on the integrity of these lending facilities. You have to do most of the work to avoid finding yourself in a financial hole too deep to climb out from.
If you’re considering to apply for a title loan in Taylorsville, West Jordan, or Provo, make sure to do the following:
This already sounds a cliché, but it’s always worth repeating: always shop around the market. Never settle for a quote coming from a single lender. Make the most of all the options at your disposal. Visit every physical location and online sites to as many quotes as you can.
This could easily give an idea which lenders are willing to work with you and those not really interested in your business. Comparing prices are paramount; use the tight competition in the lending environment to your advantage.
Ask for Clear Information
In any loan, the Devil is always in the details. You ought to know how exactly your interest is calculated and how your supposed repayments come about. Never go for vague explanations, like you’d just pay a slightly higher fee if you roll over your loan.
You have the right to understand precisely the scenarios when you’d pay off your debt completely, incur steeper charges, or lose your vehicle to repossession.
Get a Co-Signer
Sometimes, use your vehicle as a collateral isn’t enough to obtain the amount you need. That’s why bringing in a co-signer is a powerful bargaining chip. In the eyes of the title loan lender, you’re suddenly a less risky borrower.
Pro-consumer groups often have good reasons to give title loan provides a bad rap, but sometimes that fault is in the borrower. As you don’t want to get the short end of the stick, be prudent and always do your due diligence.