Sometimes life circumstances demand you to assess your financial situation, and you may decide to go for a title loan to cover an unexpected expense. Although this type of loan comes with high-interest rates and often requires you to comply in the short term, some people choose them because they don’t consider the applicant’s credit rating, and usually, they can be approved very quickly. While searching for the best title loans online, aim for anti-scam or financial review sites to see if people have submitted complaints about their services. In these reviews, you will also have a better insight into the title loan lender’s application process. If you’re considering a title loan to help you pay an unexpected expense, the most common collateral asset asked by the lenders is a vehicle. If you’re thinking about opting for a title loan in the near future, we share some insight about how to find the best title loans online.
Check For Licenses
One of the first steps you should take once you’ve located a company that offers these kinds of services is to make sure that they’re legally allowed to operate in your area. Usually, you can check online directories dedicated to listing licensed title loan companies, or the business’ website should show and avail this information. If you go to their in-person offices, they should be displaying the license for operation in a public area.
You must research beforehand and ask for more options by consulting with friends and family or going online. Too many people fall for scammers that take advantage of their victim’s poor financial situation. Take all precautions to guarantee that you’ve chosen a legitimate business and that they will keep your collateral assets safely. Look around their office and evaluate how they maintain their work area, how they treat other customers, and how they answer your inquiries. Any title loan lender should be transparent in their operations and eager to clear your doubts about how they will manage your assets while you’re committed to the repayments.
Search For Reviews
Before deciding to move forward with a contract, another good practice you can follow is to do a quick search online for other customer’s reviews about the title loan provider. While you read these reviews, take notes about their comments on customer services and contract agreements. Some might require to verify your identity via a phone call, while others may go through the entire application online. These customer reviews may also discuss if the lender demands visual inspections of your car before releasing the agreed amount. All these details are essential to determine whether you will be dealing with a respectable business or if you have to steer away from a potential scam.
Understand The Repayment Conditions
Once you have several options at hand, start comparing their fees, interests, and rents. Generally, when you ask for more money, the overall cost will also be higher. If you go for a longer repayment time, keep in mind that this may impact the total amount you pay back to the company. A rule of thumb for title loans should be a repayment time between 30 to 60 days, similar to payday loans, and verify that the interest rate is never more than 30% of your principal.
Depending on the lender, the fine print may specify restrictions that can play against you in a significant way. For instance, they may add penalties associated with early payments or impose mileage restrictions to your vehicle as an excuse to reject it as a collateral asset. Check every detail of each form before filling out your information, and remind yourself that you have the right to look at other options and not move forward with a title loan if you don’t feel comfortable with it.
Searching for financial solutions can become a complex situation without clear guidance. Some people go through a title loan and can find themselves in a worse position if they don’t comply with the repayment options. You must understand the implications written out in the contract and come up with a savings plan on your own that will allow you to stay afloat and keep your vehicle. And last but not least, even if it sounds a bit obvious: try to choose a lender that will let you continue using your car within the contract’s duration. Not all companies have the same policies regarding collateral assets, so keep an eye out if you don’t want to lose your only transportation method for some instant cash!