Considering a car title loan online? Title Loans can be expensive and the increasing number of online title loan companies makes choosing your lender a challenge. There are several tips that can help make sure you get a title loan that is in your best interest.
Car Title Loans are a form of secured loan that allows consumers to borrow money using the equity in their vehicle. These loans have changed over the years and now online car title loans are available in many states. If you are considering a car title loan online, make sure you understand both the costs and benefits associated with them.
Three Key Factors for Online Title Loans
When shopping for a car title loan online it is important to keep in mind three key factors:
- The total cost of the loan
- The car title loan lender
- The loan terms and conditions
These factors should be figured out before you apply for the loan; during loan preparation which is the fist part of what we will cover.
Online Title Loan Preparation
The first step before getting any title loan, including an online title loan, is preparation. Often title loans are rushed in to to pay for emergency expenses and preparation is skipped. This, in many cases, leads to an unfavorable loan. Even the best online title loans can be expensive, so preparation is important.
Online Title Loan Tip 1 – Find out the Total Loan Cost
Assuming you have already determined you make a good candidate for a title loan, the first thing you will want tot do is figure out the total loan cost. Title Loans online are usually amortized, meaning the cost of interest is spread out over the loan term. Sometimes lenders try to focus you on the monthly payment, rather than the total loan cost. With title loans, this can be a big mistake and end up costing a significant amount of money. Take a look out how much a title loan can cost when amortized over a longer time frame.
Online Title Loan Tip 2 – Find the Best Title Loan Company
The next tip for getting an online title loan is to find a lender that is best for your situation. You should take into account cost, location, payment methods, and anything else that is important to you. Do some research on the lender an make sure they have a good reputation. It is also advisable to compare their interest rate with other lenders to make sure it is reasonable for the loan amount. This is just a high level overview, we cover the full title loan process in our guide.
Online Title Loan Tip 3 – Terms and Conditions
The final tip is to make sure you are comfortable with the terms and conditions of the loan. This includes everything from late fees, payment terms, loan length, default definitions, and every agreement related to the loan. This requires taking your time and reading the loan agreement in full. If you get to a clause you don’t understand, ask the lender to explain it to you. This can sometimes be more difficult with online only title loans as you will not be with the lender when reading the agreement. Regardless, give them a call with any questions.
Car title loans ca be a great source of short term funding using the equity in your vehicle. Title loans can also be the start of longer term financial problems if you get stuck in a very high interest loan that is very difficult to repay. Make sure to complete the necessary preparation to help make sure a title loan is the solution to your short term financial needs and not the opposite.