Smart Ways to Use Title Loans in Ohio

According to Car Title Loans of Ohio, title loans have a bad reputation in the United States that isn't necessarily fair. While borrowers do risk losing their vehicle and must pay high interest charges, title loans are risky for lenders as well, and they provide emergency loans to people who cannot obtain a loan from a bank or credit union. 

The lender even points out there are some ways title loans can save borrowers money, and shares three of these methods below. 

A representative from American Car Title Loans explains that most borrowers seem to turn to this loan option to save money by avoiding late payments on other bills. He pointed out that utility companies typically charge both a disconnection and reconnection fee if the service is turned off, as well as late fees. These fees can easily top $100, even if the bill amount is less than $150. 

In this case, consumers can save a substantial amount of money by borrowing just $150 with a title loan for one or two weeks to avoid late fees, utility disconnection and reconnection fees that go with it. The typical interest charges for a loan of this amount is minimal. 

Consumers may also use title loans to put cash in their bank account to cover checks that have been written in the last few days. According to Bankrate.com, the average bounced check fee is more than $27, and this is just the amount the consumer has to pay the bank; the consumer may also be on the hook for another $25 or so to the company that deposited the check. 

Bounced checks have become more frequent thanks to electronic check clearing today, which means banks don't need to take the time to process a physical check but instead use a digital check. Checks can now clear a bank account in hours, not days. 

Consumers who realize they have written checks to local businesses or mailed checks to another lender may obtain a title loan in Ohio and have money in their bank account in under one hour to cover these checks and avoid substantial fees. 

Finally, Car Title Loans points out that some consumers may save money by using a title loan to consolidate debt from credit cards and even a small car loan balance. This will not save every consumer money, as it depends on the interest charges currently being paid to the companies, the difference between the old minimum payments and the new minimum payment and how long they take to pay off the title loan. 

It also comes with risk, as the lender points out. Still, consumers should do the math to see if a title loan can save them money by consolidating several smaller credit card and car loan balances into one new loan. 

American Car Title Loans provides title loans to residents in Ohio. All Car Title Loans serves the entire state of Ohio and specializes in online title loans. Their lending process begins with a short online application, followed by a follow-up phone call for verification and a meeting with a mobile loan agent at a convenient location to complete the loan and deliver the cash same-day. They have four locations, including locations in Columbus, Cleveland and Cincinnati.