Free title loans are a way for people who have less-than-stellar credit to be able to get a loan. Their vehicle is used as collateral. Obviously, when getting a title loan, it's important to make sure each payment is paid on time. However, there are several other obligations that you may need to fulfill, depending on any changes in certain circumstances in your life. Here are 4 changes you may experience during the term of the title loan that would necessitate informing your title loan company.
Change of address
If you move to another address, you'll need to inform the title loan company. That way, they can have your new mailing address available to them in case they need to send you some documentation or other correspondence regarding your title loan. Not informing the title loan company regarding a change of address could cause the title loan company to be concerned about fraudulent activity.
Change of vehicle insurance
When you get a title loan, you will need to show proof of insurance. If you change your insurance policy or get a new policy from a different insurance company, you will need to inform the title loan company. If you don't alert them of the change and you stop making payments on your current vehicle insurance, the insurance company can inform the title loan company that you no longer have insurance on the vehicle through them. Should this happen, the title loan company may repossess your vehicle, because they wouldn't know about your change to a different insurance provider.
Change of checking account
Often, title loan companies ask for checking account information, typically in the form of a cancelled check. Typically, the checking account must be open and active. If this is a requirement for the title loan you will get and you change banks or your checking account gets closed, either by you or by the bank, you will need to inform the title loan company. Depending on the terms and conditions of the title loan company, you may need to show proof of another checking account.
Change in the vehicle's operability
If the vehicle becomes inoperable due to mechanical malfunctions, you will need to tell the title loan company. Title loans are given depending on the condition of the vehicle at the time it was evaluated. Changes in the valuation of the vehicle won't result in a change in the loan terms you owe. However, they may claim the vehicle to sell or scrap and subtract that amount from your loan repayment plan.