In a more volatile economy, borrowing is inevitable. A job layoff or a medical emergency can happen anytime and, when you are short of funds, a loan is often the only solution to your financial woes.
Car title loans are fairly easy to obtain but before you do so, make sure that you take the time to gather as much information as possible to make the best decision for you and your family. There are numerous car title loan firms available.
Finding the right one can be tricky. You can help yourself by doing the following when looking for a title loan lender.
To start with, make your list of title loan companies. Begin some research on each firm to make sure they are legitimate. You can easily find out if the company is licensed to operate in your state and you may want to verify that any information you gather is, in fact, true.
Experience, Trust, and Reputation
Think about it: who would you rather work with? A company that has been in business for a month or one that has been dealing with vehicle title loans for over 20 years?
In California, for example, Car Title Loan California, a licensed consumer finance company, has been specializing in car title loans since 1994. A lender that has been in the industry for a while with a solid reputation for helping its customers is one that you can trust.
Most reputable lenders will publish testimonials from customers that have used the lender’s services. You should take the time to read through several of them to get an idea of other borrower’s experiences with the company.
Find out if any of your friends or family has ever borrowed money using a car title as collateral.
If so, ask about their experience and, if favorable, request a name and phone number so that you may call them. Lenders that do not offer any testimonials should raise some suspicion. Smart lenders publish lots of testimonials because they know that they are one of their best sources of advertising.
Watch Out For Hidden Fees
A vehicle title loan is pretty straightforward. You fill out your application, prove your identity and residency, and present a clear title to the lender. The lender makes sure the car matches the title and then assesses its value. A loan schedule is drawn up with terms and rates. Unlike other types of loans, there should be no extra fees when taking out a title loan.
Compare Interest Rates
As you would with any type of loan, shop around and compare the interest rates and terms of a variety of car title loans. The interest rate is what it will cost for you to borrow the money from the lender. The higher the rate, the more you pay. There are many title loan companies online these days making it much easier to compare rates. Take the time to do so and find the best deal
Finally, after taking your time to draft an understudy. You are now rest assured to choose the company that meets your needs and goals