Getting a car title loan should not be something you jump into. You should only seek this type of loan if you have investigated and exhausted all other viable alternatives. Once you decide that working with a car title loan lender is in your best interest you'll then need to be sure you know what you're doing. Ask yourself, does the vehicle need an inspection? Will I need to hand over the keys to my car or let the lender have access to my DMV records? This type of financing should be easy to understand. Many online lenders make things a lot more complicated than they need to be. Some lenders who provide car title loans will add fees and interest if they think you don't know what you're doing. If you take out an online title loan under the wrong circumstance you may find yourself in a situation that you can't dig yourself out of. The number one recommendation that we make to people is easy to understand. Slow down and make the best long term financial decision. Let's get right into it and break down what we see are the biggest mistakes people make when they need fast cash.
Don't make the mistake of doing zero research into the online lender
You may think you know what a title loan is. You may think you can find a licensed lender who doesn't require an inspection and that there's no alternative. Fact of that matter is that this may not be correct. The only way you'll know for sure is to do research into different companies. Don't do research on the type of title loan you're interested in. But also on the company that wants to provide you with that car title loan. Find out if they require an inspection or if their near you. It should be no different from if you were investigating a car lender, mortgage broker or installment company. Because you may have bad credit and limited options it doesn't mean you can't investigate what you're getting yourself into. Take a few hours and do some searching online for comparison quotes as well as real feedback from consumers and online watchdog sites. There are many lenders who are more than willing to provide funding even if you bad credit. Some people will come to this site expecting to take out a title loan and end up going in another direction. Other options available to you are payday loans, bank loans or credit card advances. Do your homework on all these options as they all have significant drawbacks. We've seen an increase in car title loan applications over the past year, and we only expect these numbers to grow. You also need to check with your state regulatory site to make sure your lender is following all necessary restrictions.
Don't think a title loan is your only option
This is critical in determining whether you make the right financial decision. Car title loans should be your last recourse when you're looking into financial or credit options to get cash. You need to avoid the high fees and heavy interest charges that are associated with online lending. Try to get a bank loan, borrow money from a friend, or take a second job if possible. Online title loans definitely serve a purpose on the financial ladder. They should only be used as a last resort when you need same-day cash. Most of us have bad credit and have exhausted all other financial options.
Don't sign up with the first title lender you come across
Much like if you were buying a vehicle from a company near you. It's best to compare and contrast quotes from many online car title loan companies. Sure this may take more time and many companies aren't near where you live. But you'd be surprised how much you can save if you find a title lender that's licensed in your state. Check if they're charging interest and fees that are in line with your state requirements. People don't know what the normal fees and rates are with a short term loan. Some sign up and hope for approval with the first title lender they come across. They'll end up paying hundreds of dollars more than they should have over the life of the loan. It's not always the case if they went with a better priced lender. Don't be that person! Do your research on car title loans, take your time and be sure you've tried all other financial options!