In states like Utah where title lending is a popular source of instant cash, many borrowers end up having a terrible experience.
First and foremost, title loans seem to be riskier than other financing options. Because they’re secured, lenders would require your vehicle as collateral, which raises the possibility of you losing your means of transportation if you default. They tend to have a higher APR than what banks, credit unions, and credit card companies charge.
These surely make title loans relatively dicey, but it doesn’t mean you’re always bound to be at a disadvantage. Many sad borrower stories happen not necessarily because the lenders are ripping them off, but rather because they didn’t do their due diligence.
If you’re considering applying for a title loan in Draper, Sandy, or Salt Lake City, make sure you do the following:
Many lenders charge steep fees, but Utahmoneycenter.com says some do everything to keep their prices reasonable. The competition in the moneylending environment in Utah has become stiffer over the years, practically forcing loan providers to keep their pricing down to win borrowers over.
Use this to your advantage. Getting the first title loan you qualify for prevents you from finding other competitive deals in the market.
Negotiate for the Terms
In title loans, not everything is set in stone. Many lenders know that most borrowers are in a tricky financial situation, which is why they are open for negotiation to let you have the term most convenient for you.
Believe it or not, the last thing the lenders want is for you to default and to resort to repossession. They’d rather get paid as planned, not go through the hassle of reselling the vehicle just to recover their losses.
Understand the Deal Completely
Some title loan contracts aren’t as straightforward as you hope they would be. That’s why you must make sure everything is explained to you clearly before you sign on the dotted line.
For instance, you should know how many times you can roll over your loan, and how much a rollover cost in total. You must be totally aware of every single fee you might pay. After inquiring about your APR, find out how much your loan costs.
Nobody said title loans are the least risky form of financing in town. However, if you need one, you can’t afford to be careless because, chances are, you likewise can’t afford the consequences.