Top 8 Tips To Find The Best Online Title Loans
By Space Coast Daily // March 27, 2020
Title loans can work remarkably well for some people looking for credit. Here are some great tips to find the best possible one for you.
#1. Find Out The Type Of Payment Options Available
You must ascertain the number of months your contract will run even before you sign off on the car title loan. As is typical of other loans, the longer it takes to pay off your loan, the lower your monthly instalments.
The downside to smaller payments is that you will take longer to settle the loan and you will pay higher finance charges. For the best experience, go for the least amount of time it takes to pay off the loan.
Additionally, you should find out how the car title loan lender will take their payment. Will you pay the lending company directly, or will the payments come from your pay check.
#2. Understand The Online Application And Approval Process Is Even Before Applying
Like many other tips discussed herein, this tip is meant to save you time. Many lenders allow applicants to complete the entire title loan application process via the internet.
Some will require applicants to complete the title loan application online and, thereafter, perform a phone verification.
Generally speaking, most companies that fund online vehicle loans, such as The Net Lender who provide title loans Orlando, can verify our application within 20 minutes. However, some companies take longer.
Moreover, before you complete the application process, find out whether the company requires a physical inspection of your car. Typically, the checks are undertaken while you pick your check.
#3. Find Out How Long It Takes To Get Your Cash
There is no standard duration one has to wait to receive the cash from a car title loan. It can take anywhere from a few minutes to a few days.
As such, you need to find out whether the online provider has a local physical branch. If there are a local brick and mortar branch, can you fill the application online and pick the cash at the local office?
Some car title loan companies send the money straight to your bank account. If this is an option, your title loan provides, find out the cost associated with the bank ACH.
You need to understand the steps involved in handing over pink slips. Every lending company operates differently and will require additional paperwork aside from your car title.
Moreover, every state has its own rules to follow when adding lienholders to pink slips or changing vehicle ownership. Read about what is needed when changing vehicle ownership.
#4. What Types Of Vehicles Does The Lender Accept
To avoid getting bad surprises, you should get this information before making the online application and getting qualified.
That said, many lenders tend to accept vehicles newer than 2000 for car title loans. A few lenders will accept car cars made in 1995 and sooner.
The mileage on your vehicle might end up being an issue well. As such, consult the lender on their mileage restrictions, especially if your car has over 100k in mileage.
In a nutshell, ensure your vehicle has enough equity to cover the loan you need. After that, you should have no trouble getting your loan in a few hours.
#5. Ensure You Can Keep Using Your Car
Some car title lenders will impound their customers’ cars for the life of the loan as a requirement. Other lenders will install a car tracker, meaning they will have an accurate location of your car whenever you drive.
While we see less these tactics with car title loans becoming common, it is still crucial for you to ensure you can drive your car after taking up the loan.
#6. Understand The True Cost Of The Loan
While this might seem an obvious consideration to have in mind, many customers do not find out the real cost of the financial transactions.
Many online lenders charge half as much of what industry market leader charges. And given that you will use your car as collateral, you should not pay the high-interest rates that are typical of installment loans and cash advance loans.
Ensure you shop around for the best interest rate possible. Additionally, read the fine print in your contract to find out whether there are extra charges and or fees.
#7. Is The Lender Licensed To Offer The Online Title Loans
You will not get a loan if the lender is not licensed to offer online car title loans within your state. Every state has stipulated the requirements an online title loan lender has to meet to be registered.
In case the lender is not registered to operate in your state, they cannot offer a vehicle equity loan.
Encountering such a situation is quite common. Many large lenders that are operating online title loans typically offer their products and services in a handful of states – not all. As such, check your eligibility to apply for a loan with the company in your state.
This also applies when dealing with retail lenders. Ensure they are licensed even in instances the lender has a local physical office.
#8. Find Out Whether The Lender Charges Pre-Payment Penalties
The interest clock will run right from the day you get the cash for the car title loan. As such, your goal should be to pay off the entire amount even before the due date.
Paying back the loan early will reduce the interest charges you end up paying for the loan. However, you can only benefit from early payment when and if you are not charged any pre-payment penalty.
While many lenders do not charge their customers any pre-payment penalty for the early payoffs, some companies still do. Ensure you verify this your lender before you sign off on a title loan.
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