When people need to get some fast money, many people are turning to car title loans to get it, as many companies will promise to get you the money within 24 hours.
There are many car title loan options that are out there, but how do you know if you are choosing the right company?
Most companies will all be offering the same terms, with fast money, but not all companies are the same, and choosing the wrong company can be a problem.
The rates that title loan companies charge will vary greatly, so make sure that you choose a trustworthy company, with the lowest rate.
How can you find a trustworthy car title loan company? The Consumer Financial Protection Bureau is in place to regulate these companies.
Finding The Right Car Title Loan Company
You want to make sure that when you are shopping for an online car title loan company, you are going to get the best terms, you need to shop around, and find the one with the lowest interest rate.
Make sure that the terms and the monthly payments will fit into your monthly budget, look for terms that are 24 months to 36 months long, this will make your monthly payments more affordable.
Choose a car title loan company that will offer amortized monthly payments, so that your payment will go towards your principal balance too, and not just the interest.
Repossession With Auto Title Loans
Repossession can happen with any type of auto financing, but with car title loans, if you choose a company that is charging you an extremely high-interest rate, then the chances of repossession are much higher.
Also with short-term title loans, repossessions can be high too, as the term is short, you will have to pay off the title loan in 30 days.
Stay away from title loan rollover companies, these are debt traps, longer-term title loans are better, but make sure that there are no prepayment penalties associated with them.
Choosing a company that has terms that will work within your monthly budget, will help you to avoid having your car repossessed.
Searching for the right title loan company
Find The Right Car Title Loan Company
Finding the right car title loan company can be done, but you must take your time and talk to different companies, you can find a trustworthy company, but you need to be careful, as not all companies are the same.
Make sure that you find a company that will charge you the lowest interest rate, title loans will always be more expensive than bank loans, but you can still find an interest rate that you can live with.
The terms of your auto title loan should have no prepayment penalties, and the monthly terms should range from 24 to 36 months terms.
Find a company that will give you the amount of money that you will need, you can look at the wholesale value of your vehicle with the NADA, and choose a company that has the largest advance rate, some companies will go up to 85% of the wholesale value.
Trustworthy Title Loan Companies
Finding title loan companies that you can trust is actually not that difficult anymore, as all the companies are online, and it is easy to see their online reviews.
You can see their Google reviews, Yelp reviews, or the BBB, this can give you a good indication if you are working with a trustworthy company.
Make sure that you ask the company the questions that you want to be answered, make sure that the interest rate will work for you, and that the monthly payments will be affordable.
Experienced Car Title Loan Companies
Choose a company that has the experience, and not one that has been in business for a couple of years, choosing one with knowledge can help you if there are difficulties down the road with your payments.
The more experienced companies will know how to handle difficult situations and will be able to help you with a solution for you.
The larger company that is more established than the smaller ones will be more financially secure, so you do not have to worry about them going out of business.
Car Title Loan Lenders
If you feel that a car title loan is a right choice for you because you need to get some fast money, and you have poor credit, then it is important that you take your time in choosing the right company.
Getting the right car title loan company for you can save you a lot of money on interest, and the monthly payments will fit within your budget.
Make sure that there are no prepayment penalties, and no additional fees when you pay off the title loan. Title loans are historically more expensive, but if you get the right terms, they can be very helpful for emergency financial situations.