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 rates online, but you might also want to 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 can negotiate better, you might also land up a deal that wouldn’t have been possible online. Besides, all title loan lenders ask for an on-site vehicle inspection, so you would have to drive to the store anyway.
- 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 websites and list the lenders that offer the lowest interest rates. Generally, most companies add interest daily. It would be best if you kept in mind that the sooner you pay off the loan, the more money you would save.
There are quite a few title lenders that have unnecessary hidden charges. For example, 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 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. For example, some title lenders give lower APR (Annual percentage rate) and additional money if they sign up for some automatic payment with them. In this way, you would save any penalties that might arise due to payment delays. The lender also finds it convenient to 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 get 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 total income will 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, the above tips will come in handy. Try to negotiate as much as possible to get the best deal.