Emergencies strike without notice and often carry with them a hefty price tag. If you find that you’re cash-strapped and need money in a matter of hours or days, you would do well to contact a reliable Utah title loans provider. Depending on the efficiency of the service, Utah Money Center noted that you could have the money in your hand in as little as two hours — and sometimes, even less.
For this privilege, however, you need to hand over your car title in exchange for cash. Using your car as collateral for a loan can be a dangerous move if you make a mistake. Here are credible ways to ensure that you don’t lose your car.
Don’t borrow more than you can afford to pay
Naturally, a lender will give you a certain fraction of your car’s value. They do this to safeguard their investment in case you default on your payments. Unlike standard loans, such lenders won’t dig into your financial history and credit scores. That is why you can have the same day loan approval as long as you own a car registered in your name. Find out how much money a lender is willing to advance you on the car, but be sure to take only what you need.
Do make a repayment plan
As another safety measure, title loans carry a higher than normal interest rates. In most cases, they can be as high as 25% for a period of 30 days. Should you default, late fees, fines, and penalties apply. Therefore, you need to make repaying the loan a priority. Consider getting an extra job or putting in some overtime, literally anything that increases your income. Apply every extra dollar towards making the loan repayment to avoid having it roll over.
While title loans are an incredible way to access quick cash when tending to an arising emergency, they can be quite pricey. Therefore, you need to practice every precaution to keep your loan from becoming a financial burden.