In this current unstable, unpredictable economy, there are times when taking up a loan becomes inevitable. For example, you could be laid off from your job or an impromptu medical emergency can happen just when you do not have enough inside your bank account to tackle.
During such instances, a loan, especially a short-term loan is your best option. If you have a car and are the owner of that car and you are sure that there is no money owed against it, then a title loan is the best option for you. A title loan can be taken against a car or truck. So how can you pick up the best title loan for yourself? Here are some ways to ensure that you come out with the best deal and not end up being shortchanged.
Value your car
The amount given to you will depend on the value of your car. You could look online to determine what you particular vehicle is selling for. Remember that any online prices will be what the seller is asking for, not necessarily what it will sell for. Also, the lender will lend to you based on the wholesale value of your vehicle, not the retail. Online prices are retail.
Reputation, trust, and experience
As you go out and look for a company that will give you a title loan, what should you consider? Would you rather have a company that has been in the business for almost a decade or one that has been in business for a month or two? Finding a company that has been in the business for many years with a solid reputation will give the best options that you are looking for and will help you get the right options. For example, if you are looking for car title loans in Mississauga, you could consider a lender that has been in the business for over 10 years.
Read testimonials from other customers
One of the most assured ways to ensure that you get the best out of such a title loan is by reading what other customers had to say about the lenders that you want to borrow money from. Many established and reputable lenders will often release testimonials from satisfied customers who have used their services. In the event that you come across lenders who do not publish what their previous customers have to say about them, be wary of them. However, be aware that bad reviews have been written about a competitor company or a serial complainer. Many should be taken with a grain of salt.
Compare interest rates
Like you would with any other type of loan, looks, and shop and compare the terms and the interest rates of the car title loans of different money lending companies. The interest rate, in this case, is what it would cost for you to borrow the money from the lender. If the interest rate is high, then you will pay more. If the interest rate is low, then that will be good news for you. It is wise to take the time to compare what different companies have to offer. The good news is that there are many car title loan companies online, making it easier for you to compare the rates. Be wary of the companies that quote cheap interest rates as they tend to have hidden costs and charge discharge fees when the loan is repaid. Many companies hold back from the amount you expect to receive. It is wise to ask if you will receive the exact amount that you are borrowing. If you are not then it would be best to walk away.
Be on the lookout for hidden fees
If the company (you are borrowing from) asks you to pay an extra fee, then you should be on the lookout. Applying for a car title loan is straight to the point. The steps to obtaining a loan include filling out your application, proving your residency and identity and finally present the clear title to the lender. After this, the lender will make sure that the title and the car match and finally assess its value. After this, a loan schedule will be drawn up with the terms, conditions, and rates so check if any hidden fees have been included.
Obtaining a car title loan is pretty easy and straightforward, however before you do so ensure that you take the time to get as much information about the loan you are about to service.
Never pay any upfront fees
If you are asked to pay an upfront fee then run away, don’t walk away, run away. You will ALWAYS lose your money. In some jurisdictions upfront fees are illegal. Do not pay an upfront fee no matter how much you need the money as it will only put you in a worse financial situation when you lose this money paid.