Car title loans are the best solution if you need fast cash. You can get a loan even if your credit score is bad. They prove to be a quick fix to your financial crisis. These loans are totally secured, just like your other loans. Anyone with a car can qualify for the loan. Hence, car title loans are pretty advantageous if used properly. Here are a few tips to get the best deal.
- Explore rates online and in stores
You might find it easy and convenient to look up for rates online, but you might also want to do the research the old-fashioned way by actually visiting the secured title loans store. By going to the store, you might get more information and if you are able to negotiate better, you might also land up a deal which wouldn’t have been possible online. Besides, all title loan lenders ask for an on-site vehicle inspection, so you would have to anyway drive to the store.
- Look at interest rates
The title loan lenders post their interest rates online and also in the stores. The information is open to the public to view and decide. You can go through various different websites and make a list of the lenders that offer the lowest interest rates. Generally, most companies add interest daily. You must keep in mind that the sooner you pay off the loan the more money you would be able to save.
- Avoid fees
There are quite a few title lenders that have unnecessary hidden charges. You might ask you to pay an application processing fee or a fee for putting a lien on your vehicle. Make sure you understand all such charges and ask the lender to explain, in case of query. A reputable lender would not shy away from giving out details.
- Sign up for an auto pay plan
This scheme provides benefits to both the lender and the borrower. Some title lenders give lower APR (Annual percentage rate) and an additional amount of money if the borrower signs up for some sort of automatic payment with them. In this way, you would be able to save any penalties that might arise due to delay in payment. The lender also finds it convenient as he would get his payment regularly and on time, saving him the headache.
- Consider a co-signer
Adding a co-signer to your deal, would help you getting a better rate of interest or at the minimum would make you eligible for a larger amount of loan money. The amount of your loan depends on your vehicle’s value and the amount of your gross income. If you have a co-signer, the amount of total income would increase substantially making you eligible for better loan deals. Before, adding a co-signer, make sure they understand all the terms and conditions of the contract.
If you are looking for a car title loan, the above tips would come in handy. Try to negotiate as much as possible to get the best deal.