Car title loans have a pretty bad reputation depending on who you ask, but that doesn’t mean they’re quite as bad as they seem.
They are often compared to payday loans when it comes to high interest rates, predatory nature, and the fact that they are primarily targeted towards people who are in the midst of a financial crisis and are therefore somewhat desperate. While all that can be true, it is important to remember that how your Ohio title loan works for you is heavily dependent on how responsibly you approach it.
So what are the main knocks on car title loans, and how can
you avoid them so your loan ends up working for you and not against you?
Understand What It
Will Take to Repay the Loan
Before you sign the contract for your Ohio title loan, make sure that you’ve read the terms and conditions so that you understand the rates and fees that are attached to your loan. Knowing this information is crucial to being a responsible and intelligent borrower and will help you calculate how much money you will really need to have to repay the loan by the end of your payment term.
For example, if your lender charges a 20 percent monthly
interest rate (the average is actually 25 percent) and you borrow $1,000 for
one month, that means that you will need $1,200 to pay back the loan off. That
is $1,000 for the entire loan with an added $200 for the 20 percent interest.
If you are unable to pay back your loan within the payment
term, your lender will most likely agree to let you roll over your loan for
another month. It is important to know that doing so will only add to the interest
fees and other fees you already owe.
Make Sure to Research
Look for a title loan lender in Ohio that is willing and able to work productively and respectfully with you. You should do the research to find the best interest rates, customer testimonials, length of existence, and more. All of these things to look for as signs that you are signing up with the right tile loan lender.
Know How to Adjust
After you take out a car title loan, it is completely on you
to be able to pay it back within your payment term. That means that it’s up to
you to figure out how you are going to budget for you to be able to pay back
your car title loan. One option available to you is to work more hours at your
current job or get a side job so that you can make more money. Another way to
get the money is to hold a garage sale or start selling things you no longer
Another possibility is to simply look at your current budget
and see where you can cut your spending for a month so that you have more money
in you account by the time your payment term ends. Consider eating out less, or
cancelling online subscriptions. Remember, this kind of cost cutting doesn’t
have to last forever, it just has to last long enough so that you can have the
money you need to pay back your car title loan.
Another thing to consider is changing your tax information
so you get more money back on your paychecks. It could lead to you owing money
by the end of the year, but it will certainly help you pay back your loan.
Keep in Contact with
This is especially important if you are beginning to come to
the realization that you are either going to be late on your payment or simply
do not have the money to make it. That does not mean, however, that it is not
wise to keep in contact with your lender throughout the life of your loan.
Still, if you do come to realize that you will not be able
to make your payment, contact your lender as soon as possible. They will likely
be able to work with you either by extending your term, lowering your interest
rate, or coming to some kind of settlement. They will only know you need that
kind of help if you tell them, though. So, that is exactly what you have to do.
Ohio car title loans have a bad reputation, and while some of that may be deserved, it is also a product of how people treat them. If you treat it like a free handout, you will certainly feel the burn when your payment term comes to an end. If you are able to treat with responsibly, on the other hand, you could very well reap the benefits of this small personal loan, and avoid all of the negative outcomes that less responsible borrowers face.
Ohio Cash Loans can help you secure the emergency cash you need today by way of an Ohio car title loan. Car title loans are a great way to unlock the existing value in your car and cover emergency expenses. Its as easy as logging on to your laptop. Start your application and get a free quote today!