If you’ve been reading our blog for any length of time you probably have a good understanding of auto title loans. You know that these types of loans can be approved in as little as one day, and that’s an added bonus if you’re looking for cash quickly. Since these loans can be approved so quickly, you can have funds wired to your bank account in a matter of hours (sometimes days). You also understand that you’ll be using the equity in your vehicle as collateral for your loan. All these benefits are great when you consider if you try to apply for personal loan, the lender is going to have you verify much more information and the underwriting process slows the approval time down to a few weeks. If you’re in need of quick cash, that’s not going to be a viable option.
There are several options available to the consumer, and unfortunately you’ve heard all of the data breaches in the news. Some institutions were not safe with personal information, and many consumers had their private information stolen. So whether you’re looking for a new mortgage, a credit card or even a title loan, you need to make sure you’re working with a well established financial institution. In short, it is very safe to apply for an online title loan. You’re on this site because you’re considering an auto title loan, and you’re doing the right thing by doing your homework first to familiarize yourself with these loans, but you should also be looking for state by state specific laws, too.
Here are a few short tips to to protect yourself and knowing that you’re working with a legitimate financial institution:
- One of the biggest red flags you should be aware of is if the lender requires you to make a payment upfront before you approved of your loan. Hangup the phone and find another lender immediately.
- Does the lender have a contract for your to review? If the lender doesn’t have a contract for your to review, that is another red flag. There are a lot of high-pressure sales tactics in this industry, and if they want you to sign before reviewing loan documentation, find another lender that will lend to you.
- Watch out for lending companies that share a similar name to other well known financial institutions. Not only are they trying to ride the coattails of another lender, but they could also be setting themselves up for being sued. This is a common practice among scammers in this industry.
- High-pressure sales tactics is another red flag. The whole purpose of these companies are to make money. I get it, you get it, but they should also want to inform you and allow you to make the best decision possible. Ask questions, and if they are vague in their answers or they don’t want to take the time to educate you, then move on.
- Check out online reviews. The FTC can help point you in the right direction, too. If there are bad reviews or no reviews of a lender, that could also be a red flag.
I know all this sounds like common sense, but you’ll be surprised as to what people will sign-up for when they’re needing a quick decision. Finally, look at their website. If the site doesn’t look professional or you see contact emails ending it Yahoo or Gmail, move on. Those sites are probably run by some guy in his bedroom and they’re looking to scam you.
There is absolutely nothing wrong with applying for car title loan online. It is perfectly safe, but in anything, there are people out there who want to take advantage of you. Go with your gut, review their site, make some phone calls. Follow our tips that we’ve laid out for you. Before giving any private information like your social security number, bank account information, or VIN, follow our tips that we’ve laid out for you.
You can also use our online directory of lenders in your state. However, we always suggest you use our tips before you sign-up for one of these loans. There are other options available to you, but they will most likely take longer for approvals, or not work with you if you don’t have good credit. Getting an online auto title loan isn’t right for everyone, but they are right for some, and when you’re working with a reputable company, we believe you’ll be just fine.