When you borrow money by using your car as collateral you will always face the risk of losing your vehicle to repossession. That begs the question of how you can avoid or even stop a car title loan repossession outright? The answer is to simply 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, take action to keep your car title. Contact your lender for an alternate so that you don’t lose your ride.
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. It is important to know that the online title loan companies don’t report the information of the vehicle to the credit bureaus. So you need to talk to the company to find out what your options are 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 Actually Report 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 indicators of address 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 to clean up your credit reports.
What To Do After You Avoid Repossession Of Your Vehicle
It is important 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 you will allow you to pre-pay with a pre-paid card or have automatic withdrawal cut out, and many will only allow payments that are put through automatic withdrawals. Making your payments on time can allow you to pinpoint how long it takes to pay the loan off and when you start making payments, if you miss a payment you will be penalized. 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 keeping 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 having to pay back more money than what you initially borrowed from the initial car title loan. It’s important to 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 taken illegally or if you need better legal representation. These types of loans are not for everyone and there are serious risks that go along with them.