6 Financial Tips to Obtain the Best Car Title Loans

Have you ever been so desperate for cash? I know the feeling; it is suffocating to have your loan application rejected, especially when you need the funds to sort out an urgent matter.

No matter how many lenders’ doors are slammed in your face, do not give up; there is always another option. One of these is applying for a car title loan. The beauty with a car title loan is that the only collateral you need is your car. Look at it as temporarily surrendering your car to the lender until you have paid your loan. If traditional lenders have turned you down, you will be pleasantly surprised with the processing speed of a car title loan.

Getting a car title loan is a great option if you do your research properly. Below are six financial tips you need to know to get the best car title loan in the market.

1. Understand the Available Payment Options

Knowing exactly how you are expected to pay the loan is crucial in applying for a car title loan. Will you be required to pay directly or through automatic deductions from your paycheck? You will also need to understand the loan term in terms of payment duration. If you choose a longer repayment period, your monthly payments will be lower, but you will pay higher financial charges and interest. The trick is to repay the loan as quickly as possible.

2. First Establish If There Are Repayment Penalties

Sometimes it’s a bad idea to pay off your loan early. Some car title loans attract a penalty for early repayment. Most lenders expect to make good profits from their dealings with you. By paying early, you save a lot of money you would have paid as interest, but this also costs the lender dearly.

3. Find out If There Is an Online Application Process

Today, you can apply for a car title loan online. Find out if the lender you have decided to approach has an online application and approval process. They might call you on phone to verify a few details, but the rest of the process takes place online. With an online application, you could have your car title loan approved in just a couple of hours. It is that fast! However, you need to find out if the lender wants to physically inspect the car before approving your loan. In most cases, this is done when you are picking up the cheque.

4. Find out If Your Car Qualifies for a Title Loan

Some lenders do not accept vehicles that are too old. However, there are others who are a bit flexible and would accept considerably older vehicles. Other factors such as your car’s mileage can play a role in determining whether your car qualifies or not. If it is more than 100K, you might want to find from the lender whether it is within their mileage restrictions before embarking on the application process.

5. Ensure the Lender Is Licensed to Operate in Your Jurisdiction

A lender can only offer you a car title loan if they are registered to operate in your area. To avoid getting into trouble with the law, do your due diligence to confirm the lender is licensed to operate in your state or province.

6. Make Sure You Get to Drive Your Car during the Loan Term

Ideally, you continue using your car even after getting the loan. However, there are isolated lenders who might want to impound your car for the duration of the loan. Others will let you drive it but insist on fitting it with a tracking device to monitor its movements. While putting a tracker on your vehicle may be acceptable, impounding it is not. Always make sure you get to keep your car during the loan term.