How to Choose Title Loan Lenders: Everything You Need to Know

Newstricky| If you’re having money problems, you’re not alone. Due to Covid and inflation, 64% of Americans are living paycheck to paycheck. This makes it quite challenging to handle financial emergencies.

What can you do if you need emergency car repairs, home repairs, or veterinarian services? If your credit card is tapped out or you don’t have stellar credit, you might feel like you don’t have options.

Now is the time to choose title loan lenders that can provide you with emergency funds in exchange for collateral.

We’re here to help you answer this question. Keep reading for everything you need to know about your title loan lender options.

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Read Online Client Reviews

Failing to research potential title loan companies is one of the worst title loan mistakes. You need to verify their credibility and reputation within the community. What do other borrowers think about the lender?

Are they honest and trustworthy? Do they have good terms and conditions? Do they treat their clients fairly?

These are important questions to ask before you choose title loan lenders. You can find all the answers to these questions by reading online reviews from other borrowers.

Find Out If Your Collateral Qualifies

It’s important to note that not all cars qualify for collateral in title loan applications. For example, if you still owe too much on the car or it doesn’t have enough value, you won’t be able to use it.

Fortunately, many title loan lenders accept other forms of collateral. Depending on the lender, you might also be able to use a motorcycle, boat, RV, or another type of recreational vehicle.

Learn About the Lender’s Loan Terms and Condition

Before you choose title loan lenders, take a moment to learn about each company’s loan terms and conditions. This is essential for comparing loan costs.

Ask the following questions:

What is the maximum loan term?
What interest rates do I qualify for?
Are there any additional fees to take out this loan?
What fees and penalties are associated with late payments?

Additionally, make sure you understand the contract clearly. With your vehicle title on the line, you need to know exactly what can happen if you have trouble making payments. At what point will you be forced to forfeit your vehicle?

Finally, before filling out title loan applications, get a preapproval quote based on your qualifications and your collateral. How much money is each lender willing to grant you.

Choose title loan lenders that can provide the money you need to cover whatever financial emergency you’re experiencing. Typically, you can borrow 25% to 50% of your vehicle’s value. However, some lenders will allow you to borrow more money, provided you qualify for it.

Find expertise

It is better to get a title loan from a company that specializes in title loans. If title loans are the company’s main business, it will process your application more quickly than a company that rarely grants title loans.

It’s a bit like finding a specialist doctor. Would you rather have open-heart surgery performed by a heart surgeon who performs open-heart surgery every day, or by a general surgeon who only operates on heart patients two or three times a year?

Speed of payment

For many people, speed of payment is also a factor. Some people may need to get cash quickly in a financial emergency, so it is worth checking how quickly payment is usually made to the applicant. This way you can make sure you get the money straight away.

These are some of the key things to look out for when choosing a provider for a car loan.

The loan percentage

When you take out a loan to purchase a car, you can borrow up to a maximum percentage of the value of the vehicle. This percentage may vary from one lender to another. Before choosing which lending institution to apply to, you need to make sure which one it is.

This will determine the amount you can borrow with your car, so you can see if it will allow you to get the cash amount you need.

Ready to Choose Title Loan Lenders?

Don’t make any impulsive decisions when looking through your title loan lender options. Follow our guide and do your homework to choose title loan lenders who have your best interests at heart.

And if you need more financial tips or budgeting advice, we have more to offer. Before you go, take a look through some of our other blog articles to find more information on how to get your financial life in order.

Benefits of title loans

No credit check: most title loans do not require a credit check. This is good news if you need to borrow money, have exhausted all other available options and don’t have good credit to apply for a traditional loan.
Quick approval and access to funds: With no credit check, lenders only need a few minutes to review your application and vehicle. Once approved, you can receive funds almost immediately or within a few days.