Money Talk:

Facts and Title Loans FAQs about

People have different ways of overcoming financial problems. Some borrow

from friends and family, while others apply for quick loans from banks and

financing agencies. A title loan is one of the best options for many.

Getting a title loan is a quick and straightforward process. Borrowers use the

equity in their vehicle to qualify and get the money they need. Some people,

however, aren’t sure about what’s really involved in borrowing money this way.

Separating facts from myths is important to avoid misconceptions and

understand how a title loan really works.

Bad Credit: a Problem? Is It

Most financing agencies point out that having good credit is

important when applying for a loan. But that doesn’t mean

customers can’t borrow some cash if they have bad credit. Some

companies don’t care if borrowers have good or bad credit. What’s

important is their car title, which serves as collateral.

Will Borrowers Their Cars? Lose

Some borrowers believe that lenders are

after their cars. This is not the case.

Lenders need car titles, not cars. They

would rather collect payments than deal

with legal costs and end up having to sell

the vehicles they got from customers who

didn’t pay their bills. Paying monthly dues

on time is important to avoid problems

and maintain a healthy relationship with

the lender. Title loan agents should

explain everything to the borrowers before

setting an agreement.

Is It Hard to Pay Back?

Many people think it’s difficult to

pay back a title loan. If they fully

understand the loan terms, it will

be easy to settle their monthly

obligations. Some financing

companies allow customers to

choose the most convenient

payment plan. This means they can

decide on a monthly payment that

suits their budget.

Applying for a title loan is quick

and easy. It’s best to contact a

reliable financing company to learn

about the process and the

requirements for application.

Resource Box:

http://www.utahmoneycenter.com/

http://www.consumer.gov/articles/1013-car-title-loans#!what-it-is

http://lerablog.org/business/economy/finance/loans/top-title-loan-myths-debunked/