The wide range of loan solutions available from lenders these days means there is something to suit all needs and preferences. However, the options are much more limited for those with low income and/or damaged credit than for those that earn a decent income and have good credit. For those in the former group, there are still solutions available and this includes the availability of car title loans, which are basically loans that are secured against a vehicle you own outright.
When looking for a car title loan, this is what you need to do. First of all, look at the local car title loan providers in your area and look at the rates of interest they charge on their loans. This can vary from one lender to another, so it is important to look and see which is the most affordable. Another thing you need to do is look at the percentage of the car value you are able to borrow, as this will enable you to see how much you will be able to get. This can also vary from one provider to another so it is definitely something you need to check.
Other important steps you need to take
Once you have found a car title loan provider you are interested in, you will need to get the vehicle valued. The lender will then be able to offer a loan based on the vehicle value and this could be a loan for around 40 percent of the value of the vehicle. It is worth noting that most lenders that offer this type of loan do not require a credit check or proof of income, as they have your vehicle details as collateral so if you default on the loan they have the right to repossess your vehicle.
Once you have found the right lender and a suitable offer of finance, you need to make sure you are happy with the repayment terms. Remember, your vehicle could be at risk if you default on the loan so you need to be certain that you are happy with the repayments and able to comfortably afford them before you make any commitment otherwise you could end up without a vehicle to your name if you are unable to keep up with your payments.
Another thing to do before you make a firm decision is to check on the reputation of the provider, as you need to ensure you go with a reputable company that is not going to cause you huge issues. You can do this by going online and looking at reviews from other people that may have used the same lender for the same type of loan. This will enable you to get a much better idea of what you should expect when it comes to the level of service you receive, the affordability, and the overall reputation of the lender. You can then make a more informed decision about your loan.Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!