In our current volatile economy, we would all much rather prefer to avoid debt, but sometimes borrowing is just inevitable. A job layoff or a medical emergency can happen any time and, when you are short of funds, a loan is often the only solution to your financial woes. There are, of course, various types of loans from which to choose, but borrowers in need of quick, emergency cash often opt for car title loans. If you meet the criteria and are considering a title loan, factor in the following before choosing a lender.
Experience, Trust, and Reputation
Think about it: who would you rather work with? A company that has been in business for a month or one that has been dealing in vehicle title loans for almost a decade? In Florida, for example, Embassy Loans, a licensed consumer finance company, has been specializing in car title loans since 2005. A lender that has been in the industry for a while with a solid reputation for helping its customers is one that you can trust.
Most reputable lenders will publish testimonials from customers that have used the lender’s services. You should take the time to read through several of them to get an idea of other borrower’s experiences with the company. Lenders that do not offer any testimonials should raise some suspicion. Smart lenders publish lots of testimonials because they know that they are one of their best sources of advertising.
Watch Out For Hidden Fees
A vehicle title loan is pretty straightforward. You fill out your application, prove your identity and residency, and present a clear title to the lender. The lender makes sure the car matches the title and then assesses its value. A loan schedule is drawn up with terms and rates. Unlike other types of loans, there should be no extra fees when taking out a title loan.
Compare Interest Rates
As you would with any type of loan, shop around and compare the interest rates and terms of a variety of car title loans. The interest rate is what is will cost for you to borrow the money from the lender. The higher the rate, the more you pay. There are many title loan companies online these days making it much easier to compare rates. Take the time to do so and find the best deal.
Car title loans are fairly easy to obtain but before you do so, make sure that you take the time to gather as much information as possible to make the best decision for you and your family.