You don’t have to be afraid of car title loans. While there are scammers and con artists out there, a little research goes a long way towards weeding out the unsavory. Here are four tips for finding a reputable lender near you.
1: Look For A Virtual Presence
Generally speaking, businesses that have made the leap from strip malls to online services are more professional than the rest. You can also save yourself a lot of time with online applications.
2: Understand Their Interest Rates
Since there are no universal laws regarding car title loans, businesses can charge anything they’d like for interest, sometimes as much as 300 percent. You’ll want to skip these greedy companies, of course. You’ll also want to avoid anyone who offers “special” or “introductory” rates that spike sharply over time.
3: Gather Your Paperwork
Some low-brow lenders only require a title for a loan. Others, like 800loanmart, will ask for a driver’s license or birth certificate to verify your identity. The more they protect against fraud, the more trustworthy the company.
4: Ask About Deadlines
No one expects to get behind on their payments, but if it happens, you’ll be glad you examined the fine print. When exactly is their money due? What are their late fees? At what point will they repossess your car?
With planning, budgeting and basic common sense, car title loans can be an easy way to dig yourself out of debt even if your credit isn’t the best. Everyone has bad luck sometimes. What really matters is how you respond to it.