An Auto Title Loan is a loan that uses your car’s value as collateral. The amount of money you can borrow depends on the value of your car and your ability to repay the loan.
If you’re thinking about getting an auto title loan, there are a few things you should know before you commit. Here are 8 questions to ask before getting an auto title loan in Utah or other states in the US:
- How much can I borrow?
The amount you can borrow depends on the value of your car. The lender will appraise your car to determine its value. When you repay the loan, you will need to pay back the amount you borrowed plus interest and fees.
- How long do I have to repay the loan?
The terms of your loan will vary depending on the lender, but most auto title loans have to be repaid within 30 days. If you cannot repay the loan within that time frame, you may be able to extend the loan, but you will accrue additional interest and fees.
- What are the interest rates and fees?
Interest rates and fees for auto title loans are typically high. Make sure you understand the terms of your loan before you sign any paperwork. When you compare lenders, be sure to compare the total cost of the loan, not just the interest rate.
- What happens if I can’t repay the loan?
If you can’t repay the loan, the lender may repossess your car. Make sure you can afford the monthly payments before you take out an auto title loan. It’s also a good idea to have a plan in place in case you can’t make the payments.
- Can I still use my car?
Yes, you can still use your car while you’re repaying the loan. However, the lender may put a GPS tracking device on your car to keep track of it. This is to make sure you don’t sell the car or hide it from them.
- What if I have bad credit?
You can still get an auto title loan if you have bad credit. However, the interest rates and fees may be higher than for someone with good credit. This is because the lender is taking on more of a risk by lending to you.
- Can I get out of the loan early?
Some lenders may allow you to pay off the loan early, but others may charge a prepayment fee. Make sure you understand the terms of your loan before you sign any paperwork.
- What do I need to get the loan?
To get an auto title loan, you will need to have a clear car title in your name. You will also need to provide proof of income, such as a pay stub or bank statement. The lender may also require you to provide a copy of your car insurance policy.
These are just a few of the questions you should ask before getting an auto title loan. Be sure to do your research and understand the terms of the loan before you sign any paperwork.