If you’ve ever tried to get a loan without stellar credit, then you may have run into some problems. For many people, finding a loan isn’t an easy process and it’s tempting to give up. Car title loans are a great option and are available with in-person and online lenders. Using your car as collateral is a great option but you’ll want to be prepared before getting this type of loan. Here’s what you need to know before moving forward.
Know Your Payment Options
Each loan lender is going to have a different payment option available. They may want to take the payments for the loan from your paycheck, or directly from you. Be sure to check how long you’ll have to repay the loan. In order to get the lowest interest payments, try to get repay the loan as quickly as possible.
Check for Repayment Penalties
One of the most frequently asked questions for title loan customers is if there is a penalty for paying off the loan early. If your loan has a term that’s greater than 30 days, it may have an early repayment penalty. Paying off the loan early will sometimes cost you more. This may still be a better financial choice than making the regular payments but be sure to read the fine print to avoid any unexpected penalties. If you’re looking for more information on payment penalties and plans, you can check out the Consumer center for a title loan customers.
Research the Application and Approval Process
Some lenders, especially online ones, have an application process that is just a simple online form. Others may need further verification. The entire process can take anywhere from 20 minutes to a few hours. Find out what you need to have in order to apply for the loan and if the lender requires a visual inspection of the car to save time in the process.
Ask About Car Types and Driving with a Loan
Not all lenders will provide loans for all types of vehicles. Most car title loans are available for cars that are newer than 2000 and have less than a 100K mileage. If you have a car that doesn’t meet those specifications, you may still be able to get a loan, but be prepared to jump through some extra hoops. Also, make sure that you can still drive your car. Some lenders will impound the car or install a tracking device. If you need to keep your vehicle, you may need to find another lender.
Check the Lender’s License
Finally, there are regulations that car title lenders must have in order to operate legally. Online lenders are easy to find but they may not be registered in your state. Make sure to check your state’s eligibility before you apply. Any in-person lenders will likely be registered but verify before accepting a loan.
Most people are able to get a good deal on a car title loan with a little planning and shopping around. If you need to get this type of loan, use this advice to get a good deal and avoid any problems in the process. You’ll be glad you spent a little extra time in the long run.