Are you thinking of applying for an auto title loan?
You’re not alone. Every year, about 2 million Americans go in for this type of loan, and for good reason. Being a secured loan, the interest rate is typically lower than what’s charged on unsecured loans, and as long as your title is clean, your application has a strong chance of getting approved.
However, applying for an auto title loan isn’t a clear-cut process. There are thousands of lenders, so finding one who best suits your needs can be a challenge.
Worry not, though. We’re here to help.
Continue reading to learn how to find the best auto title loan.
Start by Making a Shortlist of Potential Lenders
The first step to finding an ideal car title loan is to make a list of potential lenders.
To do this, contact people in your social circles and ask whether anyone has used a car title loan in their past. If yes, inquire about their experience with the lender. How fast was the approval process? Are there any hidden fees or charges?
If any of your friends or relatives have had a positive experience with a car title lender, they will recommend them. Add these lenders to your list.
You can also perform an online search. Something like “best auto title loan lenders near me” will return a list of some of the highest-rated lenders in your region. Add a couple of these to your list.
Ultimately, you should have 3-5 potential lenders on your list.
Go Through Each Lender’s Requirements
Approval requirements for car title loans vary from lender to lender. Some have age requirements for cars, others don’t care about a car’s age as long as it has a market value. Some impound a borrower’s vehicle until the loan is paid off while others only install a tracking device.
As such, the next step is to establish each lender’s requirements. In most cases, you’ll find the information on the lender’s website. But if you’re unable to find the information or you need clarification, call in.
While checking the requirements, you also want to inquire about approval timelines, modes of loan repayment, fees and charges, and whatnot.
By the end of this step, you’ll have a good idea of the lender you’d like to do business with. Strike those with requirements you can’t meet off the list.
Check Business Licenses and Reputation
There are lots of unscrupulous loan companies, especially on the web. If you’re not careful, you could waste your time and even lose money dealing with companies that don’t exist.
This is why you need to check the licensing details of the potential lenders remaining on your list. Don’t just take “ye, we’re licensed in this state” for an answer. Verify the details with the relevant department in your state.
Lastly, go through online reviews. If the company has been in business long enough, you’re sure to find what past clients are saying about its services. You don’t want to borrow money from an auto title loan company with lots of negative reviews.
Go Get the Best Auto Title Loan
To find the best auto title loan, you need to find the best lender. With this guide, you now know the steps you need to take to find your ideal lender.
All the best and keep reading our blog for more handy tips.