Post Tagged with: "car loan"

What You Need To Know Before Getting A Car Title Loan

Man handing over car keysAt some point in people’s lives, there may come a time when they would need to spend a certain amount of money, money which unfortunately they don’t have on hand. A medical emergency perhaps, or major house repairs that aren’t covered by their savings.

When this happens, one option for getting the money needed is to turn to cash loan service providers like Utah Money Center. In Salt Lake City, there are different kinds of loans available for those who need to borrow money fast. One of these is a car title loan, which is a small and short-term loan in which the title on a vehicle is used as collateral.

Here’s everything you need to know about a car title loan and when it’s ideal to apply for one.

How does it work?

Borrowers need to pledge their vehicle as loan collateral by giving the vehicle’s title to the lender until the loan is repaid in full. In order for you to borrow against your car, you need equity in it. In most cases, borrowers need to own the vehicle free and clear (with a clear title to show for it), but there are cases when lenders approve loan applications even if borrowers are still paying off a standard purchase loan.

How much can you borrow?

The loan amount is based on the car’s value or the equity in it. In general, the greater the car’s value, the bigger the amount that you can borrow. However, the full value of a car is rarely given because the higher the amount lent, the more difficult it will be for borrowers to pay it back. Lenders may give only the amount that they can get for the car if they have to repossess and sell (it if the borrower is unable to repay the loan).

What is the usual loan period?

Car title loans are often due for complete repayment within 30 days. In cases where borrowers are unable to repay within that period, they can extend repayment by rolling over the loan. This means they get a new 30-day loan, but they would have to pay new loan fees and additional interest.

What do you need to apply?

Applying for a car title loan requires you to complete a loan application, after which you will need to present your car, a photo ID, proof of insurance, and the clear title. You may also be required to provide duplicates of your car keys.

When applying for a car title loan, make sure you review the loan terms. Ask the lender to tell you the total cost of the loan as well as the annual percentage rate or APR. Lastly, borrow only what you can repay in full by the date the loan is due so that you avoid paying for a loan rollover or worse, losing your car.

February 9, 2018 at 7:53 amFinance

The Nifty Tactics That Will Get You the Best Auto Loan Rate

Auto Loan in UtahWith literally hundreds and hundreds of car lending companies in Utah, you would definitely find it hard to choose one. All of them have these seemingly great offers, which make it even more difficult. And with so many of them competing for customers, many of them have decided to lower their rates, which also adds up to the already difficulty in selecting the right lender with the best offer.

Fortunately, there are a lot of things you can do to get the best auto loan rate in Utah from providers such as Wasatch Peaks Credit Union. Here are just a few of them.

Never underestimate the power of your credit report

Almost every lending institution out there, whether for vehicles, houses, or businesses, always take a very close look at their applicants’ credit report. They check for any red flags, particularly those that have something to do with your debts or your credit worthiness. When they see that you missed a payment or a deadline for one of your financial responsibilities, they can already tag you as a high-risk borrower. This could either mean higher interest rates or even a disqualification of your application.

This is why you should never forget to always make a request for a copy of your credit report. Especially when you know you paid all your dues on time. A lot of people have made the mistake of not checking their credit reports and ended up having to pay seriously higher interest rates just because of an error on their report.

Use all available online tools for comparison

Much thanks to the availability of so many different tools designed to help car loan applicants, you will now find it a lot easier to find just the package and interest rate that suits you and your financial capabilities the best. Just do some cruising on the World Wide Web, and you will find online tools such as those for comparison, for calculating the overall cost of the loan, or how much you can afford to pay.

Keep these in mind, and you definitely will have higher chances of finding and securing the best rate for your auto loan.

October 1, 2016 at 1:00 amFinance