5 Tips to Follow When Finding Title Loans Near Me
Have you tried to get a loan to start a small business, to enroll your children in school, or to solve major or minor personal finances? If you have, how difficult was it to get it? Indeed, you have had trouble getting such loans.
Fortunately, there are quick loans that you can get to solve your financial emergency problems. There are many fast cash loans to choose from. But if you have a car, you can opt for a title loan. You may be asking, “Where can I get the best title loans near me?”
In this post, you will learn some tips for finding the right company that offers car title loans near me. But first, let’s define what a title loan is.
A Quick Definition of Title Loan
A title loan is a type of loan service where a borrower must provide collateral in exchange for a borrowed money. Many people prefer this loan because of two reasons. First, it does not require the credit rating of the borrower when applying for this loan. Second, you can get cash quickly as low as $100.
The Difference Between Car Title Loans and Title Pawn Loans
Many people cannot tell the difference between car title loans and title pawn loans. In fact, some people believe that both title loans are the same, which isn’t true because there’s an enormous difference between the two. To help you understand their differences, let’s define them one by one.
So, what is a car title loan? This type of loan requires putting up your vehicle as your collateral. The reason why this is called a title loan is that you have to give the key of your car as well as the car title to the lending company. Nonetheless, you can still get your vehicle and drive it even before repaying the loan.
A title pawn loan, on the other hand, is a loan service where you must follow the same rules of many pawnshops. In other words, you need to give your car to the lending company to get the money. The amount of cash that you get depends on the value of your vehicle.
So, the most significant difference between the two is their ways to get money. The first one gets the title of your car, while the other one obliges you to give your vehicle to the lender. For this reason, many people prefer the former option. In addition to getting their money quickly, you can drive your car around. Nobody would notice that you acquired a title loan unless you failed to repay the lender on the agreed date.
Whether you choose to get a car title loan or a title pawn loan, getting their money is easy. Just provide the requirements that they want, fill out the information, and submit it to the loan service. Within only a few hours, you will receive a message from the lender, telling you that the borrowed money is ready.
The Pros and Cons of Getting a Title Loan
Getting title loans near me can help solve emergency problems that need quick cash. However, they can only be of great help if you pay your loans on time. Therefore, it is essential to know the pros and cons of this type of loan.
Listed below are the advantages and disadvantages of a title loan:
Advantage: Title loans are perfect for borrowers with bad credit history.
Getting a loan when you have a low credit score can be hard. When the lender sees your credit history, he or she will tell you that your request was denied. Otherwise, the company will ask for a significant amount of cash, which makes it impossible to pay your loan.
With title cash loans, you do not have to deal with this problem. You only need to provide collateral – in this case, your car – to get cash with low credit scores.
Furthermore, you can choose this option if you are trying to build your credit status. That way, you can get a more secure loan in the future.
Disadvantage: It has high annual percentage yield (APY).
Getting car title loans near me will help you with your financial problem. However, you need to know what you are getting into regarding the annual percentage yield (APY). If you cannot return the borrowed money in time, the interest rate increases in a flash. It is for this reason why some borrowers end up losing their cars.
However, there is one way to avoid this problem. You only need to pay back the loan on the agreed date to lessen the interest rate. Doing so will not only help you keep your car, but you also get to improve your credit status.
Advantage: It provides quick cash.
Title loans are not offered for free. But knowing that you can get money in just a few hours can be a lifesaver. For instance, you need to pay your child’s tuition fee because the test day is only a few days away. However, you still have no money in your pocket.
You can use this loan as your school payment. This type of loan only requires a few hours to complete the process. Hence, you will be able to pay your child’s tuition fee on time.
Disadvantage: It has the risk of losing your car.
Anyone who tells you that getting a title loan has no risks involved is lying to you. There’s a reason this is called a title loan. As mentioned earlier, this loan service requests for your car title as your collateral. If you cannot pay the lender, he or she can get the title of your vehicle from you.
Nonetheless, it will not matter if you can pay your loans on time. If you are earning money, and you are confident that you can pay them on time, then you have nothing to worry about. However, if you pay your debt with another quick cash loan, it is likely that your car will be taken from you.
Advantage: This is not a payday loan.
Payday loans can be a great quick cash solution if you need money right away. However, this type of loan can be notorious as it can get all of your cash in your ATM account due to the excessive amount of interest rates. If you do not want to deal with this problem, the title loan is an excellent alternative to payday loans.
Since you do not need to have a good credit score to get this loan, their policies are a bit firm but fair. This means that you can get the amount of cash that you need without worrying about losing all of your money on your next payday.
Disadvantage: Some loan companies have hidden charges.
Some lenders that offer title loans near me are reliable, while others are not. Some loan institutions have hidden charges besides the fees that you need to pay. You need to watch out for these companies. Rather than helping you with your fiscal crisis, they will pull you down until you cannot recover.
To prevent this from happening, you need to know if you need to pay for more charges on top of your existing fees. Look for title loan places near me that are reliable. Read their policies to find out how much you need to pay if you get a loan from them. That way, you will not be surprised by the amount you need to pay when the due date arrives.
Advantage: Getting title loans is easy.
Because this is a kind of quick cash loan, you do not need to wait for weeks or a month to get the borrowed money. Furthermore, there’s no credit history involved. Therefore, getting a loan is easier than you think.
5 Tips on Getting the Best Deal on Title Loans
You may ask, “There are many title loan places near me. How do I know if the title loans near me offer good deals?”
There are five things to consider when looking for the best auto title loans near me, and these are as follows:
- Identify the payment methods offered by the company.
Before you apply for a title loan, be sure to ask the lender about their payment options. Some car title loan companies require you to pay your debt directly to them, while others prefer to get your payment via paycheck. However, some lending companies offer both options. Look for title loans near me that offer different modes of payment. This will give you a better chance to repay your debts on time.
Additionally, you need to ask the lender about how long the title loan will last. An extended repayment term means you only need to pay a low amount of money each month. However, there is a caveat. If you choose a loan with an extended repayment period, likely, you will pay more due to finance charges. The best choice is to look for title loan services that offer a shorter repayment period.
- Find out if there is a penalty payment.
Being ahead of your deadline gives you a good record. However, regarding title loans, being early may not be your best way to repay your debt. Some auto title loans near me will give you a fine if you pay your loans early. For example, if you get a loan with a 30-day payment period, it is likely that there is an early payment price attached to it.
This means that if you decide to pay your loans a few months earlier than your agreed date, you will pay a fine.
Most lenders find ways to make high profits from their clients. Therefore, they offer high levels of interest rates to pay for the money that they have lent.
When searching for the best car title loan companies, you need to know their payment policies. That way, you do not have to deal with penalties and pay more than the amount that you borrowed.
- Understand the company’s approval process and online application.
Due to advancement in technology, the way of applying for loans has changed. Gone are the days when you need to go to the nearest lending service to apply for a loan. Nowadays, you can do it online.
Despite the rapid process, the way of applying for a loan still varies. Some lenders will be able to process your application via online. Others require more evidence of ownership via phone call and the like. The online application process may take a minimum of 20 minutes to get the company’s approval, while others need more time. Regardless of the number of hours that it needs, it can help you save time in getting the loan.
Therefore, before applying for a loan, you need to know their application process. That way, you will be ready once the lenders seek some requirements.
- Find out the types of cars the lender accepts.
Some car title lenders only accept vehicles manufactured in the year 2000 or later. Others still take 1996 car models.
Additionally, you need to consider the mileage of your vehicle. If you are driving your automobile for more than 100,000 miles, it is best to know the mileage restriction of the lender. Do this before filling out any form to avoid wasting time.
- Make sure that the loan firm has a license to operate in your area.
This is one of the crucial things you need to look for when finding the best car title loan companies. States have different regulations when it comes to providing loans. Its purpose is to protect consumers from bankruptcy. If the lender does not have a website, it means that the company does not have the right to issue car title loans.
When looking for a loan institution, you need to find out if the company is licensed or not. Also, find out the company’s eligibility. This is to make sure that you are in good hands.
There are many car title loan companies out there. If you follow these tips, you do not have to ask this question: “Where can I find the best title loans near me?”