When you get a loan, you enter into a financial transaction that can impact your future for many years to come.
Even auto title loans, which are shorter in length than most other loan types, could tie you up for a year or more depending on the repayment schedule.
Anytime you intend to be involved with a single company for that long, it is imperative that you learn all you can before signing a legally binding contract.
There are a multitude of lenders providing online car title loans these days, and each one has different features designed to lure as many customers as possible.
For example, some promise not to run credit checks, a few offer instant loan approval, and others guarantee the lowest interest rates around.
But it would be a mistake to base your decision on gimmicks like these.
Instead, look for companies that offer the following.
An informative website The lender's website should answer almost all of your questions about how online car title loans work.
Ideally, it should contain information about the minimum qualification requirements for borrowers, as well as details about the application process, current interest rates, typical repayment schedules, and any extra fees that might be assessed.
There should also be a page listing questions (and answers) from past customers or a contact form for submitting a new question.
Secure pages Identity theft is a widespread problem these days, so you need to be extra careful about transmitting personal data while applying for auto title loans.
Do not fill out any online forms unless you are 100 percent certain that the page you're on is secure.
Most lenders go out of their way to make it very clear that their sites are protected, which helps ensure that your confidential information remains private.
Affordable repayment plans Some of the more unscrupulous lenders out there hope to trap customers in an endless cycle of borrowing by committing them to repayment plans that are almost impossible to stick to.
In order to prevent this from happening, you must read all the fine print and carefully review the payment schedules the lender offers.
Will you be able to stick to weekly payments? If not, look for a lender that accepts biweekly or monthly payments.
Also, check to see if the lender charges prepayment penalties.
Paying off auto title loans early can save you a lot of money in interest, which is of course to your advantage.
Excellent customer service Companies that offer online car title loans can be located virtually anywhere.
If you have a problem at some point down the road, you might not be able to simply hop in your car and visit the office to seek a solution, making it all the more vital for you to be able to contact the customer service department via other means.
Companies that don't respond to your phone or e-mail inquiries in a timely manner are not worth the headaches and stress they will inevitably cause.
Positive reviews Unbiased reviews published by past customers on third-party websites can give you a good look at how lenders truly operate.
By reading reviews, you can discover the names of reputable companies and find out which places offer the best auto title loans at the lowest interest rates.
There's no question that online car title loans are a valuable resource for people with money problems, so if you need quick cash, then you should definitely apply.
Just make sure to spend a few extra hours vetting lenders first by evaluating how each company stacks up against the above criteria.
By doing so, you'll increase your chances getting a hassle-free loan.