Need a few thousand dollars now?
You might be thinking about getting a title loan.
A title loan is a short-term high-interest (and high-risk) loan that uses a car title for collateral.
Here’s our guide to picking title loan providers.
Pay Attention to Interest Rates
It’s worth spending time researching the most competitive interest rates available to you. Doing homework isn’t fun, but choosing the first company that looks good in an effort to save time isn’t a good approach. Regardless of what the fine print says, calculate the lowest interest rate with a tool like www.TitleLoanser.com to get the best option.
Beware of Sneaky Fees
Some lenders will use buzzwords and clever wording to mask hidden fees in a “good deal.” One sneaky tactic is charging fees for paying off loans early, or for paying over the phone instead of online or vice versa. When you’re choosing a lender, choose the company with the most free options, and don’t be afraid to ask questions.
Take Reviews Seriously
Every business seems to have that one crazy review that stands out amongst the more “normal” reviewers. We all know to take that review with a grain of salt. But, if the lender you’re looking at has more crazy than not, it’s likely that they aren’t the best company to work with.
Picking Title Loan Providers that Specialize in Title Loans
Always choose a lender that specializes in title loans. Lenders who specialize in title loans usually process applications faster and with a higher acceptance rate. A specialist will also be savvier in the process and therefore more helpful and trustworthy.
How Do You Get Your Title Back?
When you finish repaying a title loan, the next step is to reobtain the car title. Ask a potential lender how long this process takes and how it will be done. Depending on where you live and your current living situation, the “how” can have a big impact.
Will Personal Data Be Shared?
Some title loan companies will sell your personal information for a profit. This can be unsettling, especially due to the circumstances. Compare how much personal information different lenders require and ask them directly how your personal information will be used and why.
How Long Is the Approval Process?
Most people getting a title loan are doing so because they need access to money fast. But, don’t assume all lenders act quickly, some don’t. Verify how fast the approval process works to ensure that getting the title loan will be worth it in the end.
Will They Take Your Car?
Some title loan companies will actually require you to physically hand over your car for the duration of the loan. This obviously won’t be a good option for a vehicle you rely on for daily use. Make sure you’re clear on these restrictions before signing your title over.
Loan Provider Options
This nugget of knowledge can go a long way in your journey to picking title loan providers. If you’re smart about your selection and diligent with your payments a title loan can really help you get through a financially difficult time.
Click over to our “money” section for more information about personal finance.