Top 6 Car Title Loan Tips to Make Sure That You Are Comfortable With the Loan
There are difficult situations in everyone’s life and one has to get a loan at some or the other stage of life. Maybe it is to start a business or for one’s own or children’s education or buy a new spacious home. If you’ve gone through such a situation, how tough it was? It must be pretty tough, right?
While you are promised to get a good amount to solve all your problems, getting a loan is not a piece of cake. So many hurdles can come in your way to getting a loan regardless of the reason you want it and several people don’t see the light at the end of the tunnel!
In such a situation, car title loans such as title loans Clearwater can solve the problem. And in today’s modern world, they are present both as land-based offices as well as purely online lenders. They need you to undergo less stringent processes to get a loan which is an attractive factor for many borrowers.
What is a Car Title Loan?
A car title loan is a kind of secured loan where borrowers can produce their car title as collateral. Typically, a prospected borrower hands over the ownership of the car temporarily to the lender till the loan is repaid.
This is what you need to know to acquire a car title loan in short. Next you can check why so many borrowers are attracted to it. It’s because of its minimum requirements, quickness and ease of borrowing. All these factors easily appeal anyone who has tried and failed again and again to get a loan.
However, while opting for a car title loan such as title loans Daytona Beach, there are many factors to consider to make sure you are not cheated or get on the wrong side of the law. In some states in the US, this type of loan is now allowed in any form, while in others, it’s allowed. The latter category however has a different set of lending rules and regulations controlling loan agents.
Thus, prior to applying for a car title loan, you should consider a few tips to avoid unnecessary pitfalls. Here they are.
1. Find Out about Payment Options Available
Prior to going ahead and obtaining a title loan like title loans Fort Myers, research a little to make sure how the lender plans to repay the loan for you, either from your paycheck or through direct payment. Besides this, you also have to check exactly how long your title loan will last.
Just like any other type of loan, a longer repayment period means lower payments every month. However, the downside of this is that you will be paying more every month on finance charges, so try your best to make sure that your loan is outstanding for the least possible time.
2. Inquire if There is any Repayment Penalty
When it’s about car title loans, there are situations when repaying your loan early is actually bad. If you get a loan with a term that is longer than 30 days, it will most probably come with an early repayment penalty. This means that if you get some money and decide to repay your loan a few months earlier than the stipulated time, you’ll be penalized.
Lenders would always like to make a high profit from your deals with them; therefore they structure their loan packages in such a way that they can get as much interest as possible on the repayment. Repaying early means that you are saving your thousands of bucks on interest payments, which straightaway reduces their profit that comes from the repayment. Find a lender like title loans Clearwater lenders who don’t charge an early payment penalty.
3. Learn about the Online Application and Approval Process
Certain online title loan lenders will have a totally online application process, while there are some others who might need further verification through phone call etc. Typically the process can take anywhere between 20 minutes or less and a few hours.
Also, it’s helpful to find out if the lender you are considering asks for visual examination of your vehicle before releasing the loan amount. Most of the times, this is performed when you visit them to collect the check.
4. Learn about the Type of Vehicles the Lender Accepts
While certain title loan lenders will only accept vehicles that were manufactured in 2000 or later, certain others will accept vehicles manufactured as back as 1995.
In many cases, the mileage of your car may also play an important role here. If it is higher than 100k or close to it, it’s helpful to learn from the lender about their mileage restriction. It’s advisable to do this even before you start to fill out any form of any sort from the lender.
5. Ensure the Lender is Licensed to Operate in Your State
As mentioned before, there are rules and regulations that have the requirements for an online title lender to be registered and they differ from state to state. If a lender is not registered in your state, they won’t be able to provide you an online title loan. So, get a lender like title loans Daytona Beach who are fully licensed and able to serve you in your difficult situation.
Due to the popularity of this type of loan, this might be a bit hard to believe, what with several online title loan lenders that are present. Therefore make sure to check the eligibility of your state before you apply for the loan.
6. Make Sure You’d Get to Drive Your Vehicle
This might look skeptical considering the fact that nearly every car title loan lender will allow you to keep driving your vehicle even after you’ve got the loan. However, time and again you may have to see the lender that needs your vehicle to be possessed by them for the life of your loan. Some others might allow you to drive your vehicle but add a tracking device to it to monitor your each and every move.
All in all, car title loans like title loans Fort Myers, should be obtained after checking the rules and regulations of your state and terms and conditions of your lender. In any case, you have to make sure you are comfortable with the loan and can lead a great life with it.