Myth Busters: Title Loan Facts You Need to Know

Posted on Nov 14 2015 - 12:01am by Business Day TV

Title Loans in UtahYou have probably heard a thing or two about title loans, which made you hesitant about applying for one. The thing is, most people believe a lot of things about this type of loan, many of which have put them in a bad light. Not all of the facts, however, are true. Many are exaggerated.

Before you disregard the thought of applying for a title loan in Orem, industry professional debunks the common misconceptions to help you make an informed decision.

They come from loan sharks

This is undoubtedly one the scariest rumors surrounding car title loans. Although there are some lenders who act like loan sharks, many of lending institutions are legitimate and follow the strict codes of ethics. As long as you make sure you work with a reputable lender, you do not have to be scared of taking out this type of loan.

The interest rates are so high borrowers won’t be able to repay them

Yes, vehicle title loans have slightly higher interest rates than traditional loans (those that come from banks and credit unions), but they are not as overpriced as many people believe.

You should still practice caution, though, since there are some lending firms that charge higher-than-normal interest rates. Take the time to conduct some comparison before you sign that contract to ensure you get the best possible rates.

People with bad credit can’t qualify

Borrowers who have a less-than-stellar credit history or bad credit score are still welcome to apply. Most title loan lenders do not perform credit checks on their clients. All they need is the vehicle’s title, identification, and proof of repayment ability. Furnishing these documents will already prompt the lender to begin processing your application. After verification of the information, the lender will provide you with the loan money.

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Title loans can be of great help to you, especially in times of emergencies. Stop believing these rumors and get one now from a highly trustworthy lender.