Did you know that 17 states allow title loans without any restrictions? They offer a fast way to get funds even if the applicant has poor credit.
However, it’s risky to fill out a title loan application without considering all your options for loan providers. If you’re new to understanding things like loan terms and conditions, the following guide can help.
Read on to learn how to pick a title loan provider that’s perfect for your situation and budget.
Reputations of Providers
Start with reading online reviews for different title loan providers to help narrow down the field. Read what past customers have to say to ensure that the provider won’t neglect customer service.
Remember to expect a few negative reviews, but look for consistent complaints to identify a provider’s weaknesses. For example, you might read serval reviews about poor communication or unfavorable interest rates.
You might read positive reviews about a provider’s flexibility when it comes to payments, which is very important with title loans. You can take a look at the title installment loans linked here for an example of flexible plans.
Keep in mind that experience is just as important as reputation when it comes to title loans. They’re not like any other type of loan and the provider you choose must have great knowledge of how they work.
Comparing Loan Costs
Title loans charge higher interest rates compared to other loans because of their short-term nature. However, it’s still very important to shop around for the best rates and conditions for your current situation.
Finding the lowest interest rate possible helps you repay what you owe with the least amount of risk. Lower rates might even allow you to pay the loan off early and save yourself some money.
It’s important to note that some title loans providers charge extra fees if you pay off your loan early. Stay away from providers with early payment penalties because that’s a massive red flag.
For instance, you might only need a week to completely pay off a 30-day loan. You shouldn’t receive a penalty for making wise financial decisions and repaying debt quickly.
Simple Application Method
If you’re struggling to understand a provider’s title loan application process, they’re probably not the best option. Trustworthy title loan providers present an easy and concise way to apply.
Select a title loan company that lets applicants finish the whole process over the phone or on their website. If you can complete the application at home, you don’t have to waste time and effort driving to the provider’s office.
Remember that you shouldn’t have to go above and beyond to simply submit an application. If a provider’s application process seems complex, you can expect complications with other details of their loans.
Reading the Fine Print
You want to avoid providers that try to sneak in hidden fees for their applicants. Hidden fees often add up fast, so it’s crucial to always read the fine print.
Make sure to carefully read through and comprehend the terms and conditions of the title loan before you sign anything. The fine print also helps explain things like late-payment penalties and other important policies.
Remember that a huge benefit of title loans is that they don’t require a lot to obtain. If a provider demands too much, it takes away one of the biggest advantages and defeats the purpose of title loans.
Typically, all a provider should need from you is proof of income, proof of residency, a valid driver’s license, and the title of a car that’s in your name. If the provider needs more than that to offer financial aid, it’s best to look for another option.
Understanding the Process
Once you’ve found the right provider, you must contact them directly or fill out a form on their website. If you don’t contact them directly via an in-person visit or phone call, a specialist usually reaches out as soon as possible.
From there, you can request a free estimate that usually only takes a few minutes to generate. To receive an estimate, plan to provide your vehicle’s make, model, mileage, year, and other standard information.
When you receive your estimate, it should let you know if you’re approved for the title loan or not. It should also state how much you can borrow from the lender and what your interest rate would be.
You can sign off on the loan agreement and submit the necessary documents for finalization if you’re satisfied with the estimate. The provider you choose can help explain the exact document you need to submit to complete the process.
Finally, you can collect your money after submitting the proper documents. This typically happens very quickly after completing the application process so that you can use it right away.
Most providers offer applicants more than one way to collect their money. You can usually pick it up in person at any of the provider’s locations or request to have them send it to your home in the form of a check or wire transfer.
Confidently Pick a Title Loan Provider
Now that you know what factors to consider and how the application process works, you can pick a title loan provider with confidence. Remember to read testimonials, compare costs, and always read the fine print before you sign for your title loan!
Take a look at our site’s finance section for more helpful loan tips and information.
