How To Find The Best Car Title Loan Company
by Arnab Dey Loans & Credit 22 March 2023
Car title loans can seem like a quick and easy way to get cash, especially when you can’t get approved for a traditional personal loan.
You can find car title companies everywhere in the states where they are allowed, as well as online shops. But how do you know that you are getting the best deal with a company that’s licensed in your state?
Given the rates and other charges different title loan companies can impose, you can cost yourself hundreds if not thousands of dollars by going to the wrong spot. Here are a few things to consider for getting the best car title loan.
Ask About The Title Loan Application Process
Many of the best title loan companies specialize in getting cash to you quickly, but the application method can be different for each company. Some companies will demand an income check to show you can pay the loan back, a fee just to apply, and will take a few days to get your money.
Compare The Terms and Conditions For Your Loan
With any secured loan, it is important to read and understand the fine print so that you know you are not being taken advantage of. Pay attention to what the company agents are telling you. If they try to persuade you to take out more than you need, then you know the company cannot be trusted. Shop around at different title companies to see if you can get a lower rate or better terms.
Get Different Repayment Options
Title loan companies can vary in how flexible they are in repayment. Some of the best companies will let you pay off the loan early with no prepayment penalty. Others will charge excessive fees for early payoffs or missed payments.
They might also demand that you regularly pay every week or two weeks. These conditions can make things difficult to stay on track with your payment plan. You will be unable to get out early from the debt and might be unable to repay if you go through a temporary rough patch.
Look for top companies near you that offer early payment options and try to pay more than the minimum due whenever you get the chance. Furthermore, consider title loan companies that offer multiple ways to make payments, such as ACH, bank wire, or even in-person cash.
Look At Other Short Term Lending Offers
Just as you should shop around title loan offices to find the best deal, you should also shop around for other ways to get cash quickly beyond title loans. These alternatives may offer lower interest rates and other advantages.
For example, you might consider a personal loan from a bank. A personal loan will take longer to apply for, as the bank will normally ask for an income and credit check, and it normally takes longer to get your money.
But the interest rates are much lower, and they can offer an opportunity for you to build up your credit rating. Even relying on credit cards can be better than a title loan. These loans from banks and credit unions are ideal, but as with other unsecured lending offers, they require an excellent credit score.
Title loans are best when you need to borrow a small sum (less than $1,000) and you need the money instantly. If those conditions do not apply to you, consider all possible alternatives to get yourself through some difficult times.