Car title loans have been designed to solve urgent financial difficulties. You can apply for a car title loan online or in the lender’s physical office. The steps to applying for a car title loans are usually easy but you have to be aware of certain tips to guide you.
#1: Do A Background Check On The Reputation Of the Auto Title Loans Company
Before making a decision on the car title loan company to choose, ensure to check for how reputable they are. How long have they been in existence? What are people saying about them? Do they have a physical office? All these are important questions to ask.
Another thing you need to consider before applying for a pink slip loan is if the lending company has the license to operate in your state or province. You will not be able to obtain a loan from a lender if they are not licensed to give out title loans in your state. Some auto title loans companies may be eligible to operate only in certain states so ensure to check for your state’s eligibility before applying. There are certain regulations which vary from one state to another that determine what is required for a company to be registered.
#2: Find Out The Payment Options That Are Available
It is very vital to know how a lending company intends collecting your loan repayment. Do they plan on taking the payments through direct payment or from your paycheck? You will also need to find out precisely how long your loan will last. Just like other types of loan, the longer it takes for you to repay your loan, the lower amount of payment you will have to make per month.
However, the negative aspect of this is that you are going to be making more payments each month on financial charges. It is in your best interest to make sure that your loan is outstanding for a very short possible period of time.
#3: Find Out If They Charge A Pre-Payment Penalty
From the day your car title loan is given to you, your interest starts counting. Due to the fact that you wouldn’t want the interest charges to keep adding up, you will want to pay off your loan before the due date in order to save money. But this can only be possible if you will not be charged a pre-payment penalty by the lending company. You have to ensure that your lender is not going to penalize you for making an early payment before agreeing to sign off your loan.
#4: Check For The Car Title Loan Application And Approval Process
This process differs from one lender to another. There are some lenders that will allow their title loan application and approval process to be done completely online, just like it is for Car Title Loans California . Others may require more verification either by putting a call through to you or requesting that you visit any of their physical branches with the required documents and your car for further verification.
#5: Check For The Kind Of Car Your Lender Accepts
Some lenders will accept cars manufactured from the year 2000 to the current year while others can still accept cars manufactured as far back as the year 1995. You also need to know the mileage restriction of the lending company.
#6: Ensure That You Can Keep Driving Your Car
During your application process, make sure that your lender can let you keep your car. There are lenders that will require your vehicle to be in their possession until you can repay your loan. Although this practice has greatly reduced, you still have to verify.
Car Title Loans can be the best option for most people when they are faced with a financial problem. It will do you a lot of good when you are prepared and aware of what you are involving yourself in before applying for the title loan.