Let’s Bust The 5 Common Myths of Title Loans

 

Emergencies can happen to anyone. Emergencies do not judge time, place or your financial condition. Most of the times, emergencies hit without any premonition and leave us feeling bewildered. During these trying times, we need quick avenues to get money with minimum collaterals.

Many of us are familiar with cat title loans. However, a huge section of the potential borrowers shy away from title loans due to a number of myths and fears surrounding the practice. Although this is a viable option for quick money during medical emergencies and family emergencies, people stay away from the title “pawn” loan companies.

Now, the question is, are you willing to come out of this world of myths and misconceptions, or are you going to let the crisis fester and cause more financial turmoil for you and your family?

Today we are here to debunk the top 5 myths surrounding title loans.

Myth 1: Title loan companies need to check your credit score

If you have enough resources to buy a car or a motorcycle, we are satisfied! Taking out a title loan against your vehicle title is basically keeping your car or motorcycle collateral for the loan amount. Certified loan companies like the Bay Area Title Loans do not need to check your credit score for loaning you the amount. We rather review the documents that prove you are the owner of the vehicle, the condition of the vehicle and the current value of your ride. We give you the amount based on the equity of your car.

Since the company is already using your vehicle as collateral, we do not need to run a thorough credit check like most loan companies sanctioning unsecured loans do. A title loan is a secured loan as well. The lender does not risk much while giving you the money you need during your emergency.

Myth 2: The interest rates on title loans are always high

Have you ever applied for any other secured loan? Then you must have noticed how the interest rates for the same loan amount varies from one loan company to another. The interest rate depends on a lot of factors including how much money you are asking for and the repayment terms. Short-term loans usually have lower interest rates. With a quick repayment term, the APR can decrease significantly.

The risk is actually lower than your education loan. Since you have already used your vehicle as a payment guarantee, being on a treadmill of loans and interests is quite impossible. It will never be a never-ending cycle of paying off the interests and never reaching the principal amount.

Myth 3: All title loan companies will charge you penalties for paying early

We have heard this for too long. However, the Bay Area Title Loans does not have any penalties for pre-payment. We would rather be quite satisfied if a loan account closes early. In fact, we have debt counseling sessions with experts who can tell you the secrets of paying off debt before term.

It is usually easier when you get a windfall. A huge tax return and work bonus are good times to pay off a massive chunk of the loan. You can even pay off the full amount with these sudden flurries. Alternatively, you can pay off a little extra each month with every installment.

Myth 4: when you take out a car title loan, you cannot drive your car anymore

We can see how it can be confusing. When you take the loan, you hand over your vehicle title. We are not interested in keeping your vehicle. You can have the money and ride around in your car as well. It just does not make sense. If we give you the money and take the car, how are you supposed to tackle the emergency situation?

The only time you risk losing your car is when you default on the payment. However, that is an extreme even car title loan companies try to avoid. We will put you in touch with our debt counselors who will help you figure out a way to pay your dues. Most title loan companies are interested in repayment. They have no interest in dealing with the entire ordeal of seizing your car and then selling it.

Myth 5: You will never be able to pay a car title loan back

This is something that almost every US citizen believes. The myths about car loan companies being unfair to loan applicants, making use of their financial distress, not giving them fair deals and “stealing” their cars have been circulating for way too long. Thinking of a loan company as a predator is undoubtedly very exciting, but it is also untrue.

You need to make sure that you are working with a registered company that has it clients’ best interests in mind. You need to research, compare and choose a company that spells out every requirement and rule overtly. We have consultants and experts who can help you pay the installments in due time. We make sure that our clients can pay us back on time for their benefit and ours. Read the loan terms before you sign on the dotted line. If you want, we can get you extra time so you can seek expert help who can explain the terms and conditions to you. We can have our specialized loan executives clarify the terms before you take out the title loan.

What did we learn?

Title loans are comparatively less risky than other forms of unsecured loans. They are easier to pay back as well. However, if you are worried about the legalities involved and the chances of losing your car, you can talk to our loan counselors and experts at length before making any commitment. The Bay Area Title Loans makes sure that each client is happy, financially satisfied and is able to pay the loan amount back on time. If you are interested in redressing your financial issues, visit https://bayareatitleloans.com/ today.