Title loans are a wonderful option for Winston-Salem residents who are looking for a quick and easy way to get back on their feet and to improve their financial situation. In case you are not familiar with them, Winston-Salem title loans are loans offered not based on credit but based on the borrower’s ability to offer up a lien-free vehicle title as collateral.
As long as a borrower can meet that basic criteria and has a regular source of income to pay back the loan, he or she can typically qualify for the car title loan quite easily. In fact, title loans in Greensboro / Winston-Salem are probably the easiest types of loans to get, even for those with poor credit or no credit or for those who have been turned down for other, more traditional types of loans.
North Carolina has very strict title loan laws, all of which are designed to keep borrowers safe, which is a good thing.
However, these laws do limit the amount of money that you can borrow, which is no more than $10,000. Just because that is the upwards limit, however, does not mean that you will be able to borrow that much…or that you should.
Typically, your borrowing amount is determined based on the value of your vehicle and, with some lenders, your income level. You receive a title loan estimate when you fill out the online application. In general, the more your car is worth and/or the more you make, the larger the loan you can receive.
However, be careful about borrowing too much, and never borrow more than you need just because you can. Remember, there are interest rates attached to what you borrow, and you will have to pay that interest back!
Be real and honest with yourself about how much you can afford to borrow and then borrow responsibly to avoid getting into a bad situation.
Even better yet, try and use the loan funds you borrow for worthwhile expenses, such as paying off bills and getting caught up. If you are responsible with your loan from start to finish, it can be a wonderful, credit-building experience for you.
How your experience turns out, though, is entirely up to you.
As mentioned, title loans do come with interest rates, and these rates are typically higher than what you’d find with a standard, bank lender. That is because title loan lenders are taking a big risk by extending money to high-risk borrowers, so they make up for it with higher interest rates.
However, not all lenders charge the same interest rates, so definitely take the time to shop around and compare the interest rates offered by lenders to find the best deal.
You’ll also want to look for a lender that:
- Has good online reviews
- Has been in business for awhile and has experience
- Is fully licensed to do business in the state of North Carolina
If you actually take the time to research your lender and to find the best lender possible, your experience with title loans should be great!