Here is a list of the top tips we suggest you follow when shopping for an auto title loan online.
- First and foremost is you need to ask if they are licensed to offer auto loans in your state. Even if a title loan company has a brick and mortar location in your state, doesn’t mean they’re registered to offer auto title loans there. What many don’t realize that even the largest title loan companies only work in a few select states. So the best advice is to ask if the given company is registered in the state that you reside it.
- How much is the loan going to cost you? This is a competitive industry where companies are trying to get your business, so finding out how much the loan will cost you is imperative. When you shop around you need to find out what the interest rate is and you also need to find out if there are any additional fees and charges. If you don’t understand what the fees are, ask your representative to explain them to you.
- Now this isn’t as common as it used to be, but you need to make sure that you can still drive your car while you’re paying off your title loan. Yes, some companies still mandate that you cannot have the car driven until you pay off your loan. Although less and less companies are enforcing this practice, please ask your representative. The last thing you want is to have your means of transportation taken away.
- For most people getting funded with their existing car shouldn’t be a problem, because many companies will offer you a title loan on a car up to 20 years old. There are some that will accept a car that is 25 years old. However, they’ll look at the quality and equity of your vehicle before accepting you. Some of the companies have mileage restrictions. Ask your representative if there are any mileage restrictions, too.
- How quickly do you receive your money? This is an important question. How quickly do you need money? This can be the difference between one company or another. Some companies can get you money in the same day, or others can take several days. If the company has a physical location near you, you can most likely pick up the money. However, if they don’t have a physical location they can transfer the money directly to your bank account via ACH. If they’re going to electronically transfer you money, you need make sure if they’ll charge additional fees.
- What is the application process? In the digital age, many companies will allow you to complete an application on their website. Some companies will also request a phone verification. Don’t let a phone verification turn you off when applying for an auto title loan. You should use this conversation to ask many of the questions listed here in this article. Also, ask if they need a visual inspection of your vehicle.
- How do the loan processor accept payments? Consider that some companies will directly take the money from your paycheck, and other companies will allow you to mail monthly payments. The longer your loan term is the smaller your repayment will be, but you will pay more interest over the course of your loan. The shorter your loan term is the more your monthly repayment will be, but you will pay less in interest over time.
- Does the loan provider have a pre-payment penalty? Remember, the longer your term is the more money you will pay, so consider if paying off your loan early. For example, if you have to pay $100.00 a month, you may want to pay $150.00 a month so more of your payment will be applied toward the principal of the loan. Most providers will allow pre-payments, but some still don’t. If this is important to you, please ask your representative if there are any pre-payment penalties. The last thing you want is to try and pay your loan off early only to find you that you’re getting charged an additional fee.
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