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It’s been a difficult time financially for many Americans. With all of the struggles of the past few years, more than half of the country is living paycheck to paycheck. It’s easy to understand why someone could use more money than they currently have on them.
It’s for this reason why one might choose to search for a ‘car title loan near me.’ These types of loans can be quite helpful to those in need of some quick cash and who might not have the financial background to get another type of loan.
What is a car title loan and what are some myths that exist about them? Read on and we’ll walk you through what you need to know.
1. You’ll Lose Your Car
A car title loan is where you put up the title of your car as collateral for the loan you’re planning on taking out. Some people would have you believe that title loans always result in the borrower losing their vehicle to the lender.
This is obviously just not the case.
Most money lenders are not actually interested in repossessing your vehicle. The title is there just to give them something to fall back on and to mitigate the risk.
At the end of the day, most title loan lenders will do everything they can to work with you and ensure you get the money you borrowed back to them without having to come for your vehicle.
2. You Need Good Credit
Some people will tell you that your credit score needs to be stellar in order to obtain a car title loan. This is one of the classic car title loan myths.
The whole point of title loans is to give access to funds to people who wouldn’t be able to obtain them through a more traditional loan. The purpose of using a car title as collateral is to make the arrangement less risky for the lender.
That means that it is taking the place of a stellar credit score.
3. Title Loans Have Hidden Fees
Another common myth out there is that all car title loans come with hidden fees that you need to be careful about. Well, it’s certainly possible that a loan of any type can come with predatory fees, it doesn’t mean all will.
It’s perfectly possible to obtain a car title loan that does not come with unexpected financial surprises.
You’ll need to do your due diligence when loan shopping, of course. However, going into the process with the idea that all car title loans have extra fees is going to create unrealistic expectations. It may keep you away from these types of loans entirely when they could be the solution you need!
Car Title Loan Near Me
“Should I look and find a car title loan near me?”
If you’re on the fence about car title loans, you might be easily swayed by the many myths out there that exist about this kind of lending. The above are just a few myths you should hear the truth about before looking for a car title loan.
Need more personal finance advice and info? Keep scrolling our blog for more.
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