Are you looking for the best online title loans? If yes, then, you never have to worry because several online lending companies offer title loans nowadays. Title loans are short-term secured loans where assets are required as collaterals. At some point, you may be spending long hours searching for an online title loan provider. To avoid wasting too much time, here are ten tips you may use to find the best online title loans quickly.
Make Sure That The Online Lender You Choose Is Licensed
License, for instance, is important for any online title loan lenders to operate. If they do not have such license, they could not extend title loan offers to anybody. That’s simple. However, what’s relevant here is that you won’t be able to apply for a title loan if your lender does not have the authority to do so in your State.
- Yes, That’s true. Although you can see a lot of lenders online, the problem is not all of them are licensed and registered to extend their title loans in your location. Besides, this is for your own good at all.
- To prevent any inconvenience from your end, check first if you are eligible enough to submit a title loan application to your chosen lender.
Familiarize How Your Lender Works and Processes An Application Before You Apply
Time is of essence especially when you’re up into something. When you are in a hurry to get a title loan for yourself, you have to consider this step. Consider how they process the application.
- “Do they prefer an online application or not?” and “Is there a need for a phone verification and visual inspection of the vehicle?” are just two of the common questions you can ask your lender.
- Most companies process applications faster than usual. Some may only take 20 minutes to verify information. On top of these, you’d know what to expect from your lender when your application has already been filed.
Ask How Long It Takes Before You Can Get Your Money
If you urgently need cash, you better ask your lender about it. Don’t presume anything. In cases like these, online title loans only take a few minutes or more before getting approved. This is not true for all lending companies especially when they do not have a physical branch in your location. Quite difficult, right? However, you have nothing to do about it. All you can do is make sure to know how long it will take you to get your money.
Know What Types Of Vehicles They Accept Before Applying
Does your chosen lender accept the vehicle that you possess? Well, it depends. Before going over with your applications, it’s just practical if you ask your lender what types of vehicles they accept for a title loan.
- As you know, not all lending companies have the same requirements for accepting vehicles as collaterals. Some only take cars that are newer than 2000. Others also allow older models that are from 1995 or sooner.
- Your car’s mileage can also be an issue. So, you better take the first move to inquire from your lender anything about their mileage restrictions. If everything about your car is set including its clean title and other documents, then, you’ll be going to be on the right track.
Ask If You Can Keep Driving Your Car
Normally, vehicles placed as collateral for a title loan remain in possession of the borrower. This is not always the case here. There are car equity lenders who require the confiscation of your car throughout your loan period. Doesn’t sound good, right?
- Well, there’s nothing you can do about that if that’s part of their terms and conditions. On the other side, some would not impound your car, but the least that they’ll do is to put a tracking device. In this case, you can still keep your car with you while paying off your monthly repayments.
Know How Much You Can Get From Your Title Loan
When you are in need of cash, you’ll surely want to make the most out of it. It’s the same with online title loans. Car equity lenders do not have the same calculation procedures.
- However, what’s common here is that the current value of your car is the basis of your title loan. So if you have an older model of vehicle, then, most probably you’ll take a lesser amount of title loan.
Determine What Payment Terms They Cater
In every application you do, you’ll always ask for the payment terms. Besides, this is part of how you manage your finances, right? The reason why you’re asking about the availability of payment tenure is to know how long it will take before you can have the full payment of your loan.
If you have that kind of mindset, you’d to overcome the burden of paying it every month. What’s advantageous about longer payment schedules is the lesser amount you’re going to pay monthly. But, here’s the downside. You’re also going to pay more interests each month on top of your loan.
Inquire How Much You’re Going To Pay Monthly
It’s good when you ask about your possible monthly amortizations. It’s one way for you to test the waters. Some title loan lenders impose higher rates and fees. For that reason alone, it’s still best if you look for a lending company with affordable interest rates. After all, it’s you who’ll pay it monthly.
Be Sure If The Lender Charge A Pre-Payment Penalty
Since your interests start running once you get your loan, it’s always better to pay credit before it falls due. But you can only do this without pre-payment penalties.
Pre-payment penalties add up to your financial burden. If your selected lender does not charge you with pre-payment penalty, then, that’s good for you. However, you still need to check and verify if your lender accommodates pre-payment charges.
Ask What Will Happen When There’s Default
Usually, when you default on your title loans, repossession of your car as collateral will follow. But, not all lending companies share the same procedures in repossessing your vehicle.
Some would give a reasonable length of time before you hand over your asset. Some would also provide you with notices about your default payments. Whatever the conditions are, don’t get to that point that you’ll probably lose your car. Choose a considerate car equity lender who knows what would be best for you.
When you’re in search of the best title loans, don’t hesitate to use the above key tips. Since title loans are regarded as risky loans, the prerogative is still yours on how you find a title loan that perfectly suits your financial circumstances.