Communicating With Your Car Title Loan Lender When You Need Help
Laura J. Solomon
March 13, 2013
Getting a car title loan these days may seem simple, and certainly helpful, when someone needs fast cash but what happens when the money is spent and it's time to pay back the loan? Unlike payday loans that range from $50-$1000, car title loans can be as high as $5000-$10,000. Although consumers may have more time to pay off a car title loan, it dones't mean it's going to be that much easier to make that payment each month. Not too mention, if you can't make your loan payment, the lender has the right to repossess your car or truck. It's a sticky situation and one that could cost you greatly.
Most auto title loan lenders don't really want your car. In fact, it's more of a hassle for them to take it from you, sell it at an auction, and try and recoup their money. What they want is consistency in payments and, as a result, full repayment of your loan. If they know that you are having problems paying on time or for the required amount, they will most likely work with you on setting payment terms that work with your budget. You must communicate with them, though, to let them know what is going on.
Communication with any lender is vital to keeping in good standing when it comes to borrowing. Whether it be a personal loan, credit card, or title loan, avoiding your lender in the event you can't pay will only harm your credit score, dig a bigger financial hole, and risk losing your car in the case of a car title loan. If you have used your car as collateral to borrow money, the lender has the right to repsosses it should you fail to make your payments.
In the event that you are not able to make your loan payment, contact your car title loan lender as soon as possible. Let them know that you will not be able to pay a portion, or all, of your payment. Most lenders will require you to have direct deposit of your paycheck in order to get approved and funded for your loan. This is because they schedule your payments based on your paycheck going into your bank account. For this reason, it is imperative that you let them know ahead of time that the money will not be in your account when they go to withdraw your payment. If you don't, you will only make it worse for yourself by being charged late and insufficient funds fees by the lender, as well as your bank. On top of that, other payments and withdrawals could be affected. It's a recipe for a financial mess!
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