The number of people taking out auto title loans is growing rapidly. What are these loans? They’re short-term loans that consumers can quickly obtain by using the title of their vehicle as collateral. These loans usually don’t require credit checks and appeal to anyone strapped for cash.
However, many people are failing to see the dangers behind it. Like the similar payday loans, regulations for these loans are not strong enough to keep lenders from getting around them and consumers are therefore being misinformed, driving them into even more debt.
Sky-High Interest Rates
When taking out these loans, consumers are not being told what is written in the fine print and are suffering from the consequences. In many cases, very high interest rates are not expressed to the consumer. High interest rates make for high payments, so vehicles are being repossessed because consumers cannot make these payments.
In some states, there are no limits on interest rates after a certain dollar amount and lenders are taking advantage of this. Their slogans claim to be able to put money in your pocket but instead, you are forced into signing off on a loan for more money than you wanted. Some interest rates have exceeded 100%.
How bad is it? A study from the Consumer Federation of America found that the average loan consumer pays $2,142 in interest on a $951 loan.
Choose Reliable Lending Options Designed To Help You
With Aspire, you don’t have to worry about high interest rates and you can find a loan that is right for you. You can take out a signature loan for smaller purchases or unexpected needs with our competitive rates and flexible terms.
Another option is the FlexLine of Credit, which allows you to be ready for anything with a convenient, flexible line of credit. Draw on your line of credit when a need arises and pay for only the amount that you borrow.
Don’t get taken advantage of with an auto title loan. See how Aspire can help your financial needs in a way that will benefit you.