Can you imagine knowing that you may start walking to work if you miss a few loan repayments? Well, that happens with title loans. Whenever you don repay your loan on time, the lender has the right to take your collateral property.
But what is a title loan?
A title loan is a type of loan that a borrower gives their car title to the lender in exchange for a loan. In most cases, those who take title loans have no regular income or have terrible credit scores. So they opt to provide collateral in exchange for a loan.
However, some bad things can happen to you, and you find it hard to pay the loan. As a result, the lender will repossess the car. That’s why you should first know about the company that you are dealing with before you get the title loan.
Five tips to get the best deals from companies that pay off title loans
1. Do your research
Remember you are putting your car at stake in case you don’t repay the loan. That’s why it’s essential to research first before you sign a contract with any lender.
It will be better to get a title loan from a well-known company compared to a new company. In most cases, established companies have built a brand, and they have a name to protect.
You should also know whether they have an active operating license. Of course, you don’t want to give your property to some unlicensed company out there. That’s why you should thoroughly research the company that you need guaranteed payday loans no matter what Australia is from to get the Viva Payday Loans.
However, you have to doubt the credibility of a new company because you have not seen their past operations. And that could be risking your car. This is because, in most cases, you provide your documents before they release your funds.
2. What cars does the company accept?
It’s crucial to know the kind of loans that the company is accepting. For example, some cars depreciate faster than others, and that’s why the lending companies can be picky when giving out title loans.
So, it will be a good idea to know whether the car you have is one that the lending company accepts. And that way, you will be sure whether you will get the title loan or not.
3. You must be the owner of the car
Indeed, you cannot get a car title loan when you are not the owner of the car. You cannot take a car loan with someone else’s car. The lending company will need you to verify all the ownership documents before giving you a loan.
In addition, providing you car will subject you to getting better deals from the lending companies. Furthermore, ensure that you get the agreement to use your vehicle during the loan repayment.
It’s so unfortunate that some companies will keep the car all through your repayment and that’s is a bad idea.
4. Know the limit that you can get
Most lenders assess the limit to give you according to the worthiness of your car and the depreciating factor. So, it’s always advisable to know what you can get from the company with your vehicle.
Remember that you should take a loan that you will repay faster to avoid the circumstances of losing your property to the lender. Even if your limit is enormous, take what you need at a specific time.
5. Are there any upfront charges?
It would be best to inquire whether the company will need any charges before giving you a loan. In addition, you should also compare the interest charges over different companies to ensure that you get the best.
My take
Getting a title loan is good, but it’s risky if you do not have a consistent source of income. Remember, if you don’t pay, you will be risking your property, and that’s a bad idea.
