(Newswire.net — October 27, 2017) — More and more people are now opting for a car title loan. It’s a kind of secured loan wherein borrowers make use of their existing car title as collateral. They’re like temporarily handing over their car ownership to the lender until they pay their loan off. It’s basically easier to qualify for a car title loan than other alternatives.
To make sure that your endeavor is smooth throughout, follow the basic guide below to keep unwanted troubles at bay.
1. Know the payment options available to you
Prior to taking out your title loan, make sure that the loan repayment plan is clear to you. Are you going to take the direct payment or does it have to be straight from your paycheck? Also, know the duration of your title loan. Like other loan schemes, the longer the duration, the lower the monthly payment. But the advantage of paying it off as soon as possible is you can skip the higher interest rates and other monthly finance charges.
2. Check if there is any repayment penalty
There are certain types of agreement wherein you get penalized if you pay off your loan earlier than agreed. Some lenders design this setup for them to rake in more profits from the steady interest charges. So make sure to ask the lender if this system is a part of their policy.
3. Understand the online application and approval process
If you want to save time, it always pays to check out how the online application and approval works. In just a few minutes to a few hours, you can get the car title loan approval in a breeze. Some application processes happen 100% online while some need your phone call verification and the like. Some online lenders may also require a visual inspection of your car prior to granting the loan request. Usually, this part happens when you are about to pick up your check.
4. Find out what kind of cars the lender accepts
Check if your prospect lender accepts the kind of car you have. Some lenders only go for those manufactured in 2000 and beyond. But there are also some who accept cars from as late as 1995.
Also, ask if the lender has certain mileage restriction. Know this prior to filling out any form, especially if your car mileage is beyond 100k.
5. Make sure the lender has the license to operate in your state
Car title loan regulations are different from state to state. A car title loan in Sacramento may be different from that of Ontario and so on. Check how each lender varies with respect to where they operate. If the lender isn’t registered in the state you’re in, they might not be able to provide a car title loan online.
Due to the high demand of this every-growing trend, more and more car title loan lenders are springing up. But before jumping into the craze, make sure that you know the process from start to finish. A little research always goes a long way.