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How To Not Get Ripped Off With Auto Title Loans

By Edited Feb 15, 2016 0 0

When you need to get money fast, it's easy to be tempted by the large sum that you can get with an auto title loan. If you have a nice car that's been paid in full, it's really easy to walk out of the loan office with a few grand in your pocket. The problem that people have with these loans is that they're very expensive, and become hard to pay back. Most loans will be repaid biweekly over several months. That's a long time to try and stay on top of a loan like this. This post is going to give you some tips that will help you save money on your loan so that you can be successful with repaying yours.

The first thing you need to check out is that you have the option to repay your auto title loan early without penalty. This is normally called a prepayment penalty when reading through the fine print. If you can pay more on your biweekly payments, you're going to save a ton of money. The longer that you're repaying the loan, the more it's costing you! Keep in mind that making larger payments does not give you the option to skip a few payments. Doing that will still get your car repossessed! It does save money by paying down the principle of the loan much faster.

Another way to make sure that you're not getting ripped off is to make sure that you don't take an "interest only" option to reduce your biweekly payment. This might seem good on the surface, but I guarantee you're going to be pissed when you've been making your payments on time only to find out that you haven't paid a dime of the original loan back! This also gives the lender more leverage should they repossess your car if you have only paid the interest, and none of the actual borrowed money.

There are a ton of different ways to get fast cash now, but title loans are going to get you the most money the fastest, if you qualify. The most important thing is that you have a complete understanding of what you're getting yourself into before signing any sort of loan contract. Walking away from a situation where you don't feel comfortable is a totally acceptable thing to do. There are a lot of different title loan lenders out there, if you don't feel right at one of them, move on to another!

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