When discussing registration and title loans there is one key difference between the two types of loans and the biggest difference of all, is that title loan will use your car as a lien, just as a pawn shop would do. This makes this credit the riskier out of the two and also should make anyone really consider whether they want to risk losing their vehicle in exchange for a couple of hundred or thousand dollars. But when the worst is to happen and you find yourself falling short on repayments, then here are a couple of things you should do, in order to avoid the repossession of your vehicle.
What do we call repossession?
Just for those who have never met with this term and don’t know the meaning of it, repossession is a legal procedure which is generally started by a bank or a credit company, if someone fails to pay a loan or credit back. Anything which serves as an official lien or mortgage can be repossessed by law and kept or auctioned by the bank or credit company. As repossession process is a long legal process, you ought to know that it’s always important to make an agreement or a new deal before the process happens or ends, in order to avoid to lose your belonging. That’s why you should only opt for any sort of loan or credit if you are over a hundred percent sure you will be able to pay it back.
Steps to avoid repossession
Don’t panic and don’t try to escape because that’s the worst possible thing you can do. After signing the Power of Attorney, the loan company will have the right to claim your vehicle as their own and may even report you to the police for literally stealing their vehicle. Avoid this situation and try to work out a better solution.
Never try to hide and lie about who you are or disappear with the car ( or hide the car then pretend it got stolen) because in that case you will totally not be able to avoid repossession and you even end up having to go to either the jail or to the court and pay an extra for it.
It’s essential to pay whatever sum you can to the loan company. This way you show that you want to pay it back only have no chance to pay the whole amount back. In case you have issues because of losing your job or other economic reasons, try to come up with a solution, such as a part time job, which can make you earn some more money and be able to pay the loan back within a short time. This is your own best interest because the interest rates are so high, that you may end up paying so much more than the sum you got as a loan.
Try to make an agreement and strike up conversations with the loan company so that they see you are trying your best to pay and to suit the conditions.
If everything fails, bring the car to the loan company yourself. This way at least you avoid the extra fees which would apply should the lender have to go to collect the car.
For more information on title registration loans and list of conditions contact a well informed and respectable licensed loan company so that you are aware how title registration loans in Glendale work.