As the old saying goes, if something seems too good to be true – it probably is. When it comes to title loans that don’t require your car, that adage has never been truer. Companies that provide these types of loans often make plenty of lofty promises, but what they don’t tell you is that you should expect to learn a few very expensive lessons by the time you’re done paying back the loan.
What to Look For
We’ve rounded up a few reasons why you should avoid vehicle title loans that don’t require your car, as well as a much smarter option for how to get a loan for a car (or any other expense) without making a pricey mistake.
For many people, trying to figure out how to get a car loan (or a loan for personal reasons) stems from the need for a few hundred to a few thousand dollars.
However, with a car title loan, you should expect to pay back your loan amount plus a significant amount of interest, as well as fees for things like documentation, loan origination, processing, insurance, and more. All of a sudden, your original loan balloons into a debt of much, much more.
Temptation to Roll it Over
“Rolling over” your title loan is a very common occurrence, in which the customer essentially pays just the interest balance in order to earn more time to pay back the loan. Because these types of secured loans terms are often very restrictive, many people are unable to repay the full amount within the required time. The loan company will inevitably provide a tempting offer to roll over your loan, and the average loan on a car title customer takes them up on that offer about eight times.
There are Smarter Alternatives
Trustworthy online loans do exist – you just have to think outside the box. Avoid the dime-a-dozen title loan companies and consider an online pawn shop instead. Pawngo was the very first company in the U.S. to earn an online pawn license, offering collateral loans in exchange for your vehicle.
Contact Pawngo to Learn More Today
Our professional, highly-trained staff evaluate your car’s value, provide you with an offer, and send the money upon your acceptance – all online. You’ll be able to view a video of your vehicle being safely stored at our secure, monitored storage facility, and the keys will be back in your hands once you complete the terms of payment.