Things To Consider Before Taking Out A Loan
You need to take out a loan to pay for an important expense. But even if it’s become easier to find a lender, with the proliferation of banks and other types of lenders, borrowing money is still a major financial decision.
Here are some things to consider before taking out a loan, so you can make the best choice for your particular situation.
Considerations Before Taking Out A Loan
What Will I Use The Loan For?
Be honest with yourself. Will you be using the money for something that is urgent and important?
Some expenses really need to be paid, because it involves your family’s health and security. For example, you need to pay for medical bills or a backlog in rent because you’re in danger of getting evicted. That is an emergency and can’t wait.
However, you should avoid taking out a loan to pay for a vacation, wedding, or kitchen renovation—things that are more of a “want” than a “need”. It’s better to save for those big expenses, rather than take out a loan just so you can do it sooner rather than later.
What Is My Credit Score?
This is one of the more important things to consider before taking out a loan because it can dictate what kind of loans you will qualify for.
For bank loans, approval factors are very strict. You need to have a credit score of at least 610 to 640 to qualify for a small loan, and 690 to qualify for bigger loans with lower interest rates. You also need to show proof of regular employment, and present income documents like bank statements and tax returns.
Fortunately, for those of you with less than perfect credit, there are lenders with more lenient loan approval factors. You can get a title loan, where you use your vehicle title as collateral, even if you have bad credit. You don’t even have to show proof of your employment—as long as you have a way to pay off the loan, you can be approved.
How Much Can I Afford To Borrow?
Even if you qualify for a $15,000 loan, it doesn’t mean you go for the whole amount. How much do you really need, and also, how much can you afford?
Look at your budget and then think of how you would adjust it to accommodate loan payments. What areas will you cut, and how? Alternatively, think of ways to increase your income or raise the money. Can you sell valuable items that you don’t need, or take on extra shifts at work?
This is one thing you need to consider before taking out a loan. While a loan can help you raise emergency money now, you need a plan that enables you to pay it off.
When Do I Need The Money?
Some loans can take longer to process. For example, if you go to a bank to get a personal loan, with a borderline credit score, they may ask you to bring additional documents or look for someone to co-sign the loan. That can take time.
In contrast, a title loan or a payday loan can be processed in just a few days, with minimal documents.
How Do I Choose The Best Lender?
It’s important to choose a legitimate lender that is registered in the state and has a good track record for customer service, transparent communication, and fast payouts.
There are fraudulent lenders who are simply after your personal information or processing fees, as well as inefficient lenders who have a complicated application process and take weeks to release the cash.
At Home Title Loans can help you seek out credible, trustworthy lenders in your area. We have vetted these lenders and can guarantee that they are legitimate, efficient, and provide excellent customer care.
Ready To Get A Title Loan?
After you’ve looked at all the things to consider before taking out a loan, and have come to the conclusion that you have an urgent financial need, you need the money ASAP, and you have a bad credit score.
Then, you may want to consider a title loan. A title loan is a secured loan where you use your vehicle title as collateral. And you can borrow up to $15,000 depending on the car’s model, age, and condition.
Unlike bank personal loans, the only loan approval factors for a title loan are:
- You are at least 18 years old
- The vehicle is fully owned
- The vehicle title is registered under your name
- The title is lien-free, which means that there are no outstanding judgments against it
Apply For A Title Loan Now!
If you think that a title loan is for you, simply fill out the inquiry form to get started. Then, a loan specialist near you will call you to explain the process and requirements and answer any questions you may have.
At that time, you’ll set up an appointment to meet for a quick vehicle inspection (which determines the amount you qualify for) and verification of documents.
Later, the representative will deliver your loan packet and have you sign a few forms. The final loan agreement will be emailed to you for your e-signature, and you get the money the same day or the next business day.
It’s a quick, simple, and convenient way to request a title loan. Fill out the form and get your request started today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
