Getting quick cash from family and friends isn’t always an option, which is why many people turn to car title loans. San Diego car owners can be confident that these loans are private, secure, and—in most cases—quick. However, there are some common errors people make when applying for title loans. These issues could delay the funding process or cause an application to be denied. Below are some of the most common mistakes borrowers make and how to avoid each one.
1. Borrowing More than You Need
You could apply for a $400 loan and get approved for $800 or more. It’s best if you only accept the amount you need. Borrowing more money than necessary could cause you to struggle with repayment. The amount of interest you’ll pay depends on how much money you borrow. Therefore, if you take the extra funds, you may have higher payments.
2. Skimming over the Contract
Read all the paperwork carefully to ensure you understand the terms of the contract. Many borrowers skim through the documents and are afraid to ask questions. Title loan companies want you to speak up if you’re confused so an experienced representative can go over the process with you. Your interests should be the top priority, and you should be able to depend on the representative to explain the details and help you fully understand the conditions, due dates, interest amounts, and other essential information about your auto title loan.
3. Skipping Payments
There may come a time when you’re unable to make a payment on your auto title loan. Instead of skipping the payment, you should contact the company immediately to determine what your options are. Skipping a payment could put you in default and lead to costly penalties. You don’t want to lose your car’s title because you’ve skipped consecutive loan payments, especially when most title loan companies have options to help you get back on track.
4. Leaving without a Copy of the Agreement
It seems simple, but many people are so thrilled to be approved for emergency funding that they sign the documents and leave without receiving copies of their contracts. Having a copy of the agreement is vital because it details crucial information, such as when payments are due, how much interest you’re being charged, and where and how you can make payments. Loan documents contain important legal information, and you must keep them in a safe, secure, and accessible location.
5. Failing to Conduct Research
Conducting research could give you insight into the application process, what information you need to supply when applying for the loan, and how long the process usually takes. Doing a little research could prevent you from applying for a loan without the required identification and paperwork. To save time and avoid a delay in the approval process, go over the testimonials on the company’s website or in their marketing materials. Reading customers’ feedback is essential because it gives you a better sense of how the company operates and treats its clients.
When they’re looking for a quick, easy way to get car title loans, including online title loans, San Diego residents turn to the professionals at Payless Title Loan. To find out how we can help you use your vehicle to secure a short-term loan, call one of our friendly representatives today at 619-600-0061.