Perhaps money is a bit tight. Maybe you’ve had an emergency expense come up, need to make some home repairs, or there’s a medical emergency. Regardless of your reason, it may be time to consider applying for a title loan if you can gain approval with your bank or personal loan lender. You may be tempted to accept an online loan from the first creditors to give you an approval. This is especially true here in Texas, as there are dozens of title loan companies in Metro Dallas and San Antonio. But we urge you to consider the following before making a commitment.
Look For A Cash Advance or Payday Loan First
Once you’ve identified a need for some extra cash, you may find it tempting to sit down and fill out a bunch of short term lending applications. While these may provide a quick resource, they’re also likely to charge you higher interest rates and more monthly fees. Believe it or not, a credit card advance can be better for you and your credit. Most advances won’t report as a short term loan or payday loan to the credit bureaus. The interest rates can be as much as 5 points lower than a lender offering an unsecured loan. The rates are still high, but they don’t approach the level of what we see with local Texas based title lenders and payday companies.
Ask about Discounts and Offers
Before you decide to work with a strange lender, try talking to a representative at your local bank. You may find that your bank has better loan or credit offers than a traditional online title firm. Going to someone you do business with may put you in line for additional discounts as well. These discounts may come in the form of lower interest rates. Or in the form of another type of reward. Such as waivers of the fees associated with your checking, savings, or credit accounts.
One Application at a Time
Only complete one pink slip application at a time. If you complete multiple applications, all of those lenders will be looking into your credit history at the same time. The same is when you compare multiple companies in TX of online title loans. Many of these firms use unknown services to look up your reporting info and it’s not good to have many hits at the same time. The lenders will see that you are applying for multiple accounts and will become hesitant about working with you. Do some research into the best services available throughout Texas and work down the list. Don’t make yourself look desperate for credit or a short term loan.
Be Honest and Responsible
Many creditors, especially banks, are going to ask you why you are applying for a online loan. Be honest when you answer the question. If you are serious in your answer, you may be surprised to find that your bank or vehicle title lender may have a program suited to your needs. Some have different interest rates, fees, or payment terms that may work better with your situation. Don’t like and say you just “need some extra money in reserve.” You aren’t likely to get a great deal that way. Also consider local grants and government programs. Many are setup to assist consumers in need of emergency assistance. There are many programs setup in large cities such as Austin, Dallas and Forth Worth. You can even find help with the State of Texas benefits page as they offer financial assistance to families in crisis.
Protect Your Identity and Financial Information
Your local bank is likely trustworthy as well as highly regulated. Those you talk to over the internet or over the phone may not be. Be wary of online title lenders who ask for application fees or who require you send money via money order or Western Union. Better yet don’t work with these companies and contact the State if any firm seems to be in violation of Texas lending regulations. You should also ask the lender what they do to get rid of your personal information (application with personal data). Check the status once it is scanned into their system. Will they shred it or otherwise destroy the Texas title loan privacy data? So it doesn’t fall into the wrong hands and leave you a victim of identity theft? Applying for a bank or credit union loan is no big deal. Same is true with a short term option like a auto equity loan or payday advance. Make sure you’re getting the best terms possible with a well-known and reputable institution!