Getting a car title loan isn’t rocket science. But thanks to the plethora of options, it isn’t a cakewalk either. With so many lenders willing to offer money, it is natural to feel overwhelmed. Plus, there are so many facets to understand. For example, some companies offer loans even if you don’t own the car completely. You only have to own a part of it. With some lenders, you can get a loan with no proof of income. Some companies even put a GPS on your car. Thus, you need to be vigilant while getting a car title loan. We make your task easy by offering five crucial tips to find the right lender for title car loans.
The reputation of the company
Car title loan lending is a popular form of non-traditional lending. Hence, there are plenty of companies offering this service in the market. To ensure you pick the ideal lender, you should first consider how reputable the company is. The internet has made it easy for companies to grow without a physical building for lending. So, you should research the background of the company. Look for information like when they started and where was their first location. A reputed company doesn’t hide its past. They will present it proudly. You are less likely to get duped or get in trouble with reputed lenders.
Know what the lender is asking for
When you start to look around for car title loans, you should make sure not to fall into the trap of pay now, get paid more later types of businesses. Many non-traditional lenders ask for a large fee upfront. Sometimes, the title loan company will not accept your application without an upfront fee, with NO guarantee that you will even get the loan. It is advisable to stay away from such lenders.
Understand if the process is simple and easy
A reliable lender will have a transparent paperwork process. The company will explain all the steps clearly to you. Unprofessional lenders generally have plenty of paperwork, and the process itself takes an entire lifetime to complete. The paperwork eats your valuable time and leaves you exhausted. So, before finalizing on the lender, you should understand the complete paperwork process. And if it is too long, you should opt for another lender.
Look out for hidden fees such as early repayment
Some lenders play dirty and come up with hidden fees to make more money. For example, you have a loan term of 12 months, so you want to pay more and finish paying off the loan in ten months. But the company says you need to pay the penalty for paying early. Thus, you end up paying more than what you are supposed to pay. So, make sure you go through the section of fees and penalties properly and do not end up paying unnecessary fees.
Go for flexible repayment options
A monetary crisis shouldn’t be overwhelming. You need to be able to handle your business and get ahead. You may find a title loan store near your office or workplace, and if you are not well-prepared, it can be easier to be swept up by the convenience. For example, if the due date is in the middle of winter, and you cannot make it to their store to make your payment on time, you may find yourself slapped with an outrageous late fee. Or it can be the holidays, and you fail to find a location that is open when you are available to make your payment. Then be ready for another late fee.
The most convenient location for making payments is not the store near your workplace or your home. The most convenient location is your phone or a computer. Therefore, you should go for lenders that have multiple repayment options. Apart from the traditional modes like mailing a payment at the payment center or paying at a participating store, the lender can have options like setting up automatic payments with a checking account or paying online on the lender’s website. Some lenders also have mobile apps through which you can make repayment.