How To Select A Title Loan Company Before Taking Up Their Car Title LoanFast Action Finance
In as much as we are all encouraged to keep off debts, there are times when cash is needed urgently and friends and family are unable to help. When these times come, your only option is to get a car title loan as it presents a very fast way of getting money. Just because these loans are easy to get does not mean that you rush to get them. You should exercise the same caution you normally use when taking other types of loans. This article will mention and explain a few factors that you should consider before applying for this type of loans.
The reputation of the lending firm
There are numerous firms that offer these kinds of loans and each of them claim to be the best. If you rush to the one that promises the whole world at the click of a button, you might regret your choice later. It is very important for you to take some time and look into the reputation of the firm before signing any documents. A firm that has been in business for a long time, say between 5 to 10 years, is the best to work with, as it would not have survived that long without a solid reputation. A reputable firm will not try to swindle you and this is why you need to research before borrowing from any firm.
The feedback from previous clients
Once you initiate contact with the lending firm, it is important for you to check their website and see if there are any testimonials posted by people that have borrowed from that firm before. This is the only way you will be able to know what to expect once you borrow from the firm. In the event that you notice a firm has no testimonials from previous borrowers, you should tread carefully as this could mean there are no colorful experiences to write. In addition, if you notice the lenders are hesitant to furnish you with testimonials, look further. A firm that has great testimonials about its services is the best to work with.
The transparency of the firm
It is also very important to look at the transparency of the firm as you apply for the loan. A title loan is very easy and simple to acquire and for this reason, no lender should have hidden fees. In most applications, all you need to do is prove you are who you say you are; your residency, and furnish the lender with the title loan of your car. The firm then determines the worth of your car and gives you the loan. This is a very simple procedure and any firm that has any hidden fees and additional costs should be avoided. Read the fine print very well and in detail as this is where dubious firms hide clauses that contain additional fees to be paid.
Look at the interest rates
The interest rate presents the costs you will undergo to borrow the loan. As you have already guessed, these vary from one firm to another and this is the reason why you must make sure you compare the rates posted by various firms. Almost all lenders that offer this type of loan post their rates on their websites, so it should not be an issue for you to do the comparison. This comparison is important in that it enables you to pick the firm with the most competitive rates and this is an advantage.
The repayment period
The other important consideration that you must make is how long it will take you to repay the loan. In most cases, you are supposed to repay the loan in 30 days. This then means that for once, you must borrow an amount that you will be able to pay off comfortably in that amount of time. In the event that you are unable to repay in this time, the lending firm will demand that you continue paying the interest on the loan and this could accrue to a lot of money. The wise thing to do is to borrow enough money to meet your immediate needs and never be tempted to borrow more than you need.
How will you repay the loan?
Since these loans are easy to apply and approved, many people ignore this factor and it normally lands them in trouble. In most cases, your salary is used to repay the loan and once the lender is satisfied that your salary can cover the loan, they will lend you the money. If you borrow a little too much than you need, a large percentage of your salary will be slashed off in order to repay the loan and you will find yourself in need of another title loan the following month. To avoid this, repay the loan in small bits where possible before the repayment period is over and you will be good to go.