There’s a reason why car title loans are getting more and more popular among consumers. There’s quite a lot, if you come to think of it. But perhaps the single most crucial benefit a borrower can get upon obtaining a car title loan is receiving the cash in urgent situations. Consumers would go for this credit option because it doesn’t require much paperwork and regard to credit history as compared with the rest. All you have to do is basically own a car.
In order to get the best of your car title loan, you must adhere to the given contracts and promptly follow deadlines. We have curated some of the most foolproof tips to pay your car loans faster, so read on.
• Obtain a Copy of All Receipts and Contracts
Although this is considered as a general rule in all forms of businesses and deals, we can’t stress this enough–you must always keep a record of all financial statements, receipts and contracts. First of all, these records are necessary in financial tracking and planning.
• Consult with a Financial Calculator
Let’s face it–financial advisers are not easy to come by. Either they won’t always be available or they just aren’t credible enough to earn your trust. When in doubt, you can always consult with a handy financial calculator. This free tool is very easy to use and interpret. You just have to input the necessary figures such as the interest rate, loan period, total loan amount and downpayment, and voila! You’ll know how much you’ll be spending monthly for the rest of the loan term.
• Opt for Bi-Weekly Payments (If Allowed)
Some lenders of car title loans Los Angeles can be lax in terms of how you pay your credit loan–a quality that everyone should look for in a lender. Ask your lender if you can settle bi-weekly payments, instead of monthlies. With this payment scheme, you will end up paying for an additional month by the end of the year. This is due to the fact that most months have extra days past four weeks. This will make your loan much easier to accomplish.
• Round Up Payments
Rounding up payments is a good practice when settling any kind of loan. Rather than paying the exact amount every month or bi-weekly, round up your payments to the nearest $10 or $50 to save up on interest and reduce your loan term.
• Pay a Large Extra Sum Once a Year
Think of this tip as paying in investment; you are basically paying for the reduction of your loan term. By making a habit of this, you can also save a lot on interests.
• Avoid Skipping Payments
The temptation to skip payments will always be there, especially with lenders that are not as strict with their payment terms. In these cases, you may be allowed to skip a couple of times in a year or term, but this can lead to serious consequences, such as more interest costs, and extending your loan term.
So many people resort to car title loans because it is the easiest to obtain, but remember that it’s just as easy to get into trouble if you’re not careful. By following these foolproof tips, paying off your loan may come sooner than you think.