With a title loan the lender places a lien on his or her own car title in exchange for a loan. The owners also collect a hardcopy of their car’s title.
The lien collected is removed when the complete loan is paid off by the lender or the car owner. When a vehicle or a car owner finds himself or herself in a hard financial situation, title loans help them get a small amount of money to get through or solve the immediate problem in order to better their economic standings or position.
Unlike the bank and payday loans, there are certain differences that are define by state when one is looking for best and reputable car title Loan Company. An individual may end up spending a lot of hours finding a car title loan provider only to find out that the lender does not offer the loans in his or her state which may be frustrating especially in time for emergencies. Additionally, there are also companies claiming to offer car title loans while in fact they want to get your information and sell it to one of the highest bidders. There’s no need to waste your time with such money lenders if you are aware of them. Here, we help you recognize and find a reputable title loan company.
Fees
If you’re looking for a reputable car title loan lender, fees are one of the many qualities that you should look at. In addition to taking your car title and placing a lien on the car, most reputable companies often charge people taking out a tile loan a fee. Other companies may even charge multiple fees which may be unnecessary. For reputable companies, fees for the title loan may not end up being more than 25% of the total loan. However, other addition fees may include the following; processing and document fees required to get the title loan, late fee for example if repayments ore documents are late, lien fees for placing and processing the lien and road side assistance program fees for people who have a title loan.
Interest Fees
Nearly all forms of loans have rates and interests that are associated with them and a title loan serves as no exception. Since title loans are short-term, they tend to come with high interest rates from most offering companies. This means that the borrower may end up paying more money than he or she originally borrowed. While looking for a reputable car title loan company, ensure that they tell you both the interest rate and the percentage rate and also the APR before you can agree to their terms of the loan. Most reputable companies will often give you these figures even before you ask or inquire for their provision.
Maximum Loan Amount
Reputable companies have established themselves and will always give you the maximum loan amount which is an advantage on your side. Title loans are a quick way to get money and this may end up giving the borrower very limited amount of money to borrow. While the maximum amount you can get form a bank loan varies, reputable lenders will always give you an amount that is close to 50% of the car’s value.
Length of the Loan
Title loans are normally short-term loans and this means that the borrower has to pay back the money and the interests they owe to the company as quickly as agreed. The length of time one is supposed to pay back the loan varies from one company to the other. If the person is not able to service the loan, many lenders or companies may confiscate the borrower’s car permanently. For a reputable car title company, you will always get additional days for example in the event of a 30 days agreement, you can always be assured for additional 30 days failure to pay your loan on time hence getting some time to save your car. Other reputable lenders will give their borrowers a loner time to repay their loan and such an event; the repayments will be structured as an interest-only payment.