What to Consider When Choosing an Auto Title Loan Company
Making the decision to borrow money is always a tough one. Making the decision on who to borrow money from can be even tougher. There’s a lot to consider when choosing an Auto Title Loan provider and the impact that decision has on your financial situation can have a long term impact over your financial future. It’s important you learn everything you can so that you put yourself in the best position to make the best decision possible based on your specific situation. Here are a few things to consider when choosing an Auto Title Loan Company.
1. Is the company stable? When you obtain an Auto Title Loan, you’re using your automobile title as security for the loan and you should make sure that the company is stable enough to enter into that type of relationship. Auto Title Loan companies open and close all the time so you’ll want to find a company that has been in business for a significant amount of time and has some stability.
2. Is the company properly licensed and insured? Most states have strict guidelines that Auto Title Loan providers must abide by to ensure that your rights are protected and your loan is processed within the guidelines of the law. Make sure you find an Auto Title Loan company that has been properly licensed within your state and your specific municipality.
3. Are the loan rates reasonable and affordable? Make sure you find an Auto Title Loan provider that offers loan solutions with terms that are reasonable and rates that are affordable. Ensure that they are up front and honest about the types of loans they offer and that their rates are clearly noted on any contract you sign.
4. Is a company that offers an introductory rate that is extremely low going to save me money? Not necessarily. Make sure you research what the rate will increase to once the introductory period is over. Many times you will end up paying more over the length of the loan. So you need to shop around. Introductory rates can easily sound appealing but may hurt you in the long run.
5. Will the lender loan enough to solve your financial need? Lenders have different lending guidelines and use different factors when making the decision on how much to loan. If the amount you are borrowing is not sufficient to solve your financial need, then you will likely need to borrow from multiple sources that may lead you on a slippery slope of debt. Make sure you find a company that will loan you enough money to solve your short term need.
6. Will I qualify? Lenders have different approval guidelines. Some lenders require specific forms of incomes or have certain credit worthiness requirements. Make sure you find a lender that is flexible enough to accept your situation and has the approval guidelines that suits your situation.
7. How long will it take to pay off my loan? In the Auto Title Loan industry it is standard for lenders to offer interest only loans. This means that every payment you make is only applied to the interest and that your loan principal balance is never reduced. Make sure you find an Auto Title Loan provider that offers an installment option with equal payments that are applied to principal and interest. This will ensure that you’ll always be working to pay off the loan obligation with each payment you make.
8. What is the process to borrow money? Make sure you find an Auto Title Loan provider that treats you with respect and has an easy process for you to borrow money. Borrowing money is a tough decision, but the process in doing so should be easy.