When you borrow money using your car as collateral you will always face the risk of losing your vehicle to repossession. That begs the question of how to avoid or even stop a car title loan repossession outright. The answer is to not find yourself in a situation where you even face a vehicle repossession.
Most payments from title loans online are made on time, and you hopefully won’t be in a situation where this happens. But you can’t cover your eyes and be blind to the risk of missing title loan payments. Do what’s possible and make arraignments, so you don’t miss monthly payments. This includes contacting your loan rep to see if they can spread out the payment due date or work with you on an alternative payment plan. Many people like to think of their car title as an asset and age it quickly so if there is discomfort in payments, act to keep your car title. Contact your lender for an alternate so you don’t lose your ride.
How To Know When You’re In Danger Of A Title Loan Repossession
A car title loan company will not repossess your vehicle unless you are two payments behind. The current bill is not always monthly, sometimes the bill is due once a month, but there are exceptions. Know online title loan companies don’t report payment information of the vehicle to the credit bureaus. So you need to talk to the company to determine your options if you have a problem paying the loan back. Adversely, if you face a car title loan repossession, the debt will sit with you and you will have to make payments to get it back under your control.
Can A Title Loan Company Repossess My Car
With an auto title loan company, your money is secured as the auto title is all that will need to be shown in the event of a loan payoff. Most loans of this nature will only require a signature and a few other address indicators as proof of ownership. There are no direct reports to the three main credit bureaus by the loan company as long as you make the payments on time, but all other information on late fees and missed payments will be reported to the credit agencies. If you need to have your credit report cleaned up when there is information that is not correct, you can work with a title loan company that can help you clean up your credit reports.
What To Do After You Avoid Repossession Of Your Vehicle
It is vital to be sure that you make auto title loan payments on time, so it does not become an issue with the loan company. Most companies require direct online payments to be vendors and avoid payments by check. Some companies will put a hold on it when check payments are set to it and may not allow it to go through. If you have a direct online payment you can electronically sign your check and mail it to the company, so they can release the hold at the time of payment in the future.
Not all companies that offer online title loans near me will allow you to pre-pay with a pre-paid card or have an automatic withdrawal cut out. Many will only allow payments that are made through automatic withdrawals. It is a good idea to make payments for your car title loan before you need to use it or pay it off.
Contact Your Title Loan Company And Work Out Payment Arraignments on Your Online Title Loan
A car title loan can help you with emergency costs and keep the interest from eating away at your income. But you always run the risk of a title loan repossession by falling behind on weekly or monthly payments. You also risk damaging your credit report and paying back more money than you borrowed from the initial car title loan. Know your legal rights regarding repossession laws and defend yourself if a lender or 3rd party collection agency tries to take advantage of the situation. Contact an attorney or the FTC if you feel your vehicle has been stolen or need better legal representation.
Also, consider the different state and city regulations that handle when and how a finance company can repossess your car. For example, cities like Phoenix and Reno have protections that limit when a lender or collection agency can repossess a vehicle. These types of loans are not for everyone and serious risks go along with them. Because of those risks, you should mitigate the chances of losing your vehicle to a repossession. Work with a company that follows all applicable laws in your state and only borrow an amount you can repay!