How To Keep a Good Relationship With A Title Loan LenderFast Action Finance SEO
Title loans are short term loans that a borrower gets using equity in their vehicle. The most popular title loan is the car title loan. This loan does not require any credit checks and all you have to provide is proof of ownership for a car that is lien-free, meaning that the car has no money currently owing against it.
People who are in need of emergency funds can use their car titles to get title loans in Brampton, and other cities across the GTA, from reputable lenders and pay back in a specified time with interest. These types of loans are quite easy to get if there is equity in one’s vehicle. Title loans can be extremely useful and can be a very positive experience if treated correctly.
The main advantage of car title loans is that they allow you to continue using your car after getting the loan. The only thing you have to do is allow for a lien to be placed on your vehicle. All the lien does is signify that your car is being used as collateral. After repaying your loan, the lender immediately removes the lien.
Understand the terms of your car title loan
Be sure to have the title loan lender explain the loan to you to ensure that you understand the terms and conditions of your loan. Doing this helps you prepare yourself upfront on how you plan to repay your loan on time, or even early. You need to ask the lender to explain the terms in a way you can understand. There are important questions that you need to ask and these include:
- How many times are you allowed to roll over the principal (reborrow)?
- Can the loan be repaid without penalty?
- If am unable to pay the whole amount in a month, how much can I roll over to the next month?
- Can I make electronic payments?
- When will the payments begin?
Having these questions answered allows you to plan your finances and sort out which lender is best for you.
Figure out a repayment plan
Once you understand the terms of your car title loan, you need to come up with a plan on how you will be making your payments on time. While most title loan lenders offer one to one year and a half terms, some borrowers prefer to repay their title loans in one balloon payment plus interest and get the loan over with. However, not everyone is able to do this. In case you are unable to come up with the principal amount when time comes, you can pay the interest and roll over the principal to the next month. Better still, try and opt for the longer term and pay the loan off when you are able. Most title loan lenders offer an discount for those who buy their loan out early.
Understand that rolling over your principal over and over again costs you money since you are only extending the term of your loan. It is recommended that you cut back on your other expenses to ensure you save enough money to repay your title loan. It can help to talk to your lender and explain your financial status before agreeing on the terms of the loan to work out on a repayment plan that you are comfortable with. The amount given out against a car title loan is usually lower than the value of the car.
All in all, title loan lenders are easily approachable. They are in the business of lending money and you are a valued customer and should keep this in mind when dealing with them. They need your business as much as you need the loan. It is not only title loans that are available, but there are also Repair Loans, Storage Loans (motorcycles, Watercraft, etc.) and Collateral Loans (equipment, classic cars, etc.). Choose which one suits you best and use your assets to work for you and get you quick and easy loans.