The Real Costs of Car Title Loans Its Not What You Think

THE REAL COSTS OF CAR TITLE LOANS IT'S NOT WHAT YOU THINK Car title loans have been criticized as costing a fortune -both in cash and by causing borrowers to lose their car and job. But, these facts say otherwise: LOW REPOSSESSION RATES AAA E A Contrary to popular belief, only AAAAA one in ten cars get repossessed because customers don't pay back the money they borrowed. INTEREST RATES ARE OFTEN COMPETITIVE WITH BANKS II % If you've got a good credit score, and you're not borrowing a vast sum of money, your interest rate is lower because you aren't considered a high risk borrower. YOU WON'T LOSE YOUR JOB No-one wants you to lose your job. If you can't repay your title loan in time, repayment arrangements such as extensions can get discussed. Title loan lenders know that people need their cars for work, and to earn a living. OTHER WAYS TO GET TO WORK Even in the unlikely chance that your car gets repossessed, less than 15% of borrowers say that they would have no other way to get to work, which means that even without a car, the borrower would be able to keep their job. TITLE LOANS WON'T NEGATIVELY AFFECT YOUR CREDIT SCORE Some people think that title loans will hurt their credit score. If you pay your title loan back on time, there are no issues. In fact, most title loan lenders don't even do a credit search, so nothing is recorded on your credit file! % YOU CAN STILL USE YOUR CAR When you pawn jewelry, for example, the lender keeps your gold. But when you take out a title loan, you can still drive your car as normal. YOU DON'T HAVE TO BORROW FROM FAMILY OR FRIENDS 13.11% of borrowers have previously borrowed from family or friends to pay for their expenses. SPREAD OUT THE EFFECTS OF EMERGENCY EXPENSES Title loans can serve an important economic purpose of allowing people to spread out the effects of unexpected expenses over a longer period of time. PEOPLE IN THE MILITARY CAN GET THE BEST INTEREST RATES 30-day title loans are capped at an interest rate of 36%. That means military personnel can enjoy some of the best rates on the market, regardless of loan size. TITLE LOAN PROVIDERS ARE RESPONSIBLE LENDERS It's not in a provider's interest to lend money without assessing affordability first. That's why providers will only give you money if they can be certain you can afford to pay it back. LoanCall.com ©866-971-7538 Sources: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2224247 http://www.consumerfinance.gov/askcfpb/1783/what-are-my-rights-under-military-lending-act.html 動