Securing a car title loan can often prove to be an endless, painstaking process which rarely materializes as you expected it to be. Although there is a loan available for every possible purpose, procuring one is a whole other story. Fortunately, there exists car title loans which can become a solution to your problems. They are a lot less demanding than obtaining a regular loan, which is the reason why it has become a preferred system for most borrowers.
If you are thinking about securing a car title loan too, these following 5 tips will guide you get the best deal in the market.
- Know What a Car Title Loan Is
In simple terms, a car title loan allows you to borrow cash relatively quickly by using your car as collateral to a title loan lender. This does not mean that you hand over your car to the lender- you simply lend your car title in return for the loan. Once the loan is repaid, the car title is bestowed back to you. Car title loans are becoming more and more popular as just about anyone can qualify for it. The lenders ask for minimal requirements, and the application and approval for these loans are far quicker than the procedure for a traditional loan. Make sure you understand in depth what a car title loan is before proceeding to apply for it.
- Learn about the Company First
As this loan is available both online and in the physical market, the options for choosing one lender can transpire into a ceaseless process. Do not select the first lender you have an encounter with. Make a list of potential lenders and look into their history and customer services.
- Approval Process
As this loan can be secured both online and physically, different companies opt for different methods for the approval of the loan. Some lenders verify the title loan application online, while others require some paperwork. Whatever your preference might be, make sure to inquire whether your lender requires a visual inspection of the car before sanctioning you the loan. Usually, for a car title loan, the approval process is its selling point as it is lightning-fast and you can get verified in the shortest period of time.
- Payment Option and Prepayment penalties
Establish a transparent communication with the lender regarding the repayment of the loan you are to receive (from your paycheck, by direct payment, etc.). Additionally, verify the tenure of the loan as well. Try to condense this tenure so that your car title loan is outstanding for the least possible time. However, make sure you are clear with the prepayment penalty attached. If you happen to pay off your loan before the designated time, you might be fined for it.
- Validity of the Lender’s License
It is obligatory to ascertain if the lender you have finalized has a valid license to operate in your state. Each state has prerequisites of its own, so look into it ahead of time. As there are too many options to choose from, you might want to check your state’s eligibility before you initiate the application process.
Is it possible to get a title loan if you do not have a car in your possession? With Fast Action Finances, you can. They provide you with alternate sources such as a collateral loan, and even provide you with provisions like motorcycle storage loans. This range of facilities ensures that you receive your loan through diverse means, easing your worries. Fast Action Finances, Ontario leading lender for 21 years, will facilitate your loan procuring process with just one phone call, providing you with a hassle-free service for all your monetary needs.