Online auto title lenders are not as prevalent as they were just a couple years ago. Make no mistake about it, these loans come with high interest rates and regulations towards these types of loans and they’re only getting tighter and tighter. It’s similar to the 2008 mortgage crisis when there were so many sub-prime mortgage lenders in the marketplace. When that bubble burst, the government stepped in and cracked down on those predatory loans. They were quite simply giving loans to people to buy homes in which they couldn’t ever pay back. Now I’m not going say that auto title lenders are as predatory as sub-prime mortgage loans, but they do have high interest rates that you need to be aware of before you decide to get one. Moving forward the government wants to make sure that there are more regulations in place for these types of loans. That’s not a bad thing for the consumer, the government is just trying to protect you. In fact, because of these regulations, there are less and less lenders in the market, and that’s great news for consumers. With less lenders in the marketplace you can feel more confident that you’re working with a reputable company.
Since there has been additional regulations on issuing title loans, they’ve made it even more difficult for them to advertise to you. You used to be able to Google lenders for auto title loans, but with these regulations, these lenders aren’t allowed to advertise in that manner. So this makes the consumers job of finding a loan more difficult. In addition, finding good quality information on what type of loan you need is sparse, too. So in this article, I’m going to attempt to help you decide if an auto title loan is right for you. Because it very likely may not be.
The typical person looking for a personal loan needs cash quickly. There are multiple options that one could go, for example, asking family for a personal loan. But if you’ve exhausted all non-commercial options, you can look into personal installment loans or auto title loans. When you’re looking for a personal installment loan you are typically looking for cash under $5,000 and look to have it paid off within a year. However, if you’re in need of more money than that, then you’ll want to start looking at an auto title loan because they offer cash well over the $5,000 threshold. A good source to help you determine what type of loan you may need was created by the government. If you go through their online questions, the site will tell you what direction you should start in.
Many lenders will offer you the equity value in your vehicle. Some will request that they have a set of keys in case the consumer falls behind in their payments, so they can take the car and sell it. This is the worst case situation. Most lenders will work with you if you fall behind in your payments, but you need to understand upfront to what would happen if you fall behind. Quite simply, lenders do not want you to fall behind on your loan. They want you to pay off the loan. But they do use your car as collateral to offer you a loan.
We created this site to help consumers find an appropriate lending company to work with and to help educate them as best as possible before they make a decision. So if you are looking for a lender you’ve come to the right spot. Here you can find a list of online auto title lenders.
The biggest take away for you (the consumer) is to ask questions. The sales representative will try to sell you the benefits of getting an auto title loan, but you need to look at the fine print. You need to ask as many questions as possible so you understand and are completely comfortable with the decision you’re making. Every company works differently and a lot does depend on the state in which you live. Keep in mind that if you fall behind on payments, the lending company can repossess your car and sell it within a few weeks. Not only will that make your credit score drop, but you will be without a car, and that can be devastating.
Since these types of loans are high interest, we cannot suggest that they’re good for the consumer. But we can provide you a list of companies you could work with if you need to. If we can help educate you on these types of loans and provide you a list of companies that have withstood government regulation, we feel we have helped you 2/3rds of the way to making the proper decision. Moving forward we suggest that financial budgeting is important in any household. Budgeting assistance is available on the web, but if you do decide to move forward with an auto title lender, breakout a spreadsheet to determine that you can payoff the loan. Because the last thing you want is to put yourself in a worse financial situation.