Popularity of car title loans has led to increase in car title loan companies and this makes it’s difficult to choose the right one for your needs. The following are tips for choosing the right car title loan companies.
Do some research on various car title loan companies that you are interested in. Make sure that the company is stable and has been in the industry for a while dealing with car title loans. Take a look at the testimonials and reviews of customers who have used their services to get an idea about their experience and see if you can trust the lender.
It is important for any potential borrower to go through the terms of contract of various lenders wisely. Any competent lender should disclose to you the loan amount, the annual percentage rate, and loan charges. Look out for companies that have hidden fees and charges such as document fees, inspection, processing fees, and title charges. Understand the payments options available to you s well as the penalty for delayed payment. Compare the loan terms of various companies to enable you find an auto tile lender that cares for you.
Interest rates is another major factor that will help you choose the right car title loan company. Figure out your budget so you can choose a title lender with rates that you can afford to pay together with the loan amount. It is important to note that the higher the interest rate, the more you will pay.
Evaluate the application and approval process of car title loan company to help you determine if they are right for you. Understand the loan application and approval processes of various lenders and select the one that is simple and suitable for you. After filling up your applications online, some companies find it important to verify the information before approving the loan. Also, know what paper work is necessary and choose a lender that will not verify your credit score.
Do your research in order to find a title lender that will provide you with a more reasonable loan term. Although most companies offer a payment of 30 to 60 days, some companies offer rollovers in order to extend your loan terms without penalties. Also, check if there is repayment penalty as some companies will penalize you if you make early repayments.
The auto title lenders you choose should also be well insured and insured. The licensing requirements for car title loan providers may vary with states, hence, you need to ensure that they are licensed according to your states requirements. If they do not have a license to operate in your state, then they are eligible to provide you with car title loan.