MoneyMagpie

Nov 21

Top four things that you should look for when taking out a title loan

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Whether you’re currently struggling to make ends meet or have found yourself facing a financial emergency that you simply weren’t expecting, being able to get fast cash can make a world of difference.

Taking out a title loan can be one of the fastest and most efficient ways to get financial assistance. But how does one find an affordable title loan? Here are a few tips you should keep in mind that will help ensure that you find the best title loan for your unique situation today.

 

1. Make Sure that All Your Concerns are Addressed

When it comes to exchanging your car title for cash, make sure that you understand every single detail about what is expected of you. The last thing you want is to find yourself having your car repossessed because you were unable to meet the requirements of the contract or, even worse, that you simply weren’t aware of them. You’ll want to walk into the lender’s office with a list of questions and concerns ready to be addressed.

Also, make sure that you really read through the title loan contract. Not all title loans are the same and you don’t want to get scammed into something that you weren’t expecting. Taking the extra few minutes to read all the fine print details will ensure that you don’t end up in a difficult position later on down the line.

 

2. Discover What is Required to Apply

While one of the biggest benefits of taking out a loan in exchange for your car title will be that your credit history isn’t as important, you’re going to want to find a lender that still does their research. You are using your vehicle as collateral for the loan, but a high-quality lender will still want to make sure that you’re going to be able to pay them back.

Stick with a title loan lender that takes the time to find out not only the value of your vehicle but also your employment position and monthly earnings. If they aren’t concerned with repayment, that’s a red flag.

 

3. Consider their Reputation

Another important factor for you to consider will be the reputation of the title loan lender. Exceptional loan options will do everything in their power to ensure that their clients receive all the assistance and support that they need before, during, and after they take out a loan. Make sure that you read through all the reviews and testimonials of people who have dealt with that lender before so you can be sure that they’ll treat you with the respect and consideration you deserve.

 

4. Know the Value of Your Vehicle Ahead of Time

In order to walk away from your lender with the cash in hand that you need, you should really understand exactly what your vehicle is worth before you stop by their office. Lenders will take a look at the overall value of your car to determine the title loan amount. Once the lender understands the cars true equity, they’ll be able to offer you a loan amount, which is usually between 25% and 40% of your overall equity. Understanding this will help ensure that you walk away with the best possible title loan deal.

 

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