Need A Car Title Loan? 4 Ways To Make Sure You Get The Best Offer
If you need a loan and don't have the best credit score, a car title loan is a solid option. With a car title loan, the lender cares more about your vehicle's value than with your credit score. When it comes to getting the best deal on the car, there are a few things you need to know.
Way #1: Check on the Cars the Lender Will Accept
Before you put your personal information out there, find out what type of cars the lender will accept. Most lenders will publicly share information about the type of vehicles they accept; sharing this information helps ensure that they get applications from people they can work with.
For example, the lender may only accept cars that were manufactured before a certain year, or they may only accept vehicles with less than a certain number of miles on them. Less common, some lenders will only accept vehicles from certain manufacturers.
Way #2: Verify the Lender Has the Proper License to Work in Your State
Second, you are going to want to check with the lender and find out if the lender has a proper license to work in your state. Some online lenders will try to offer car title loans even if they don't have a license in the state, so always ask and verify that the lender can work legally in your state.
Way #3: Make Sure You Keep the Car
Some title lenders require you to hand over the car during the length of the loan. Other lenders require you not to drive the car until the loan is paid off, verified with odometer checks.
You are going to want to make sure you cannot just keep the car but drive the car. You only want to have to give up your vehicle, or the right to drive it, if you don't pay back your loan. Be sure to verify that you get to keep the car while you pay back the loan in writing.
Way #4: Make Sure There Is No Prepayment Penalty
Finally, you are going to want to make sure that there is not any prepayment penalty. You should be able to easily repay the loan off early if you have the money to pay the loan off early. Avoid lenders that will charge you a big penalty if you pay off the loan early. Having the option to pay your title loan off early can allow you to save a lot of money in interest.
If you want to get the best title loan, verify the lender will accept your car before applying for the loan. Make sure the lender will allow you to keep the car and doesn't have any large prepayment penalty if you pay the loan off early. Also, verify the lender can work in your state. Taking these steps will help you get a fair title loan.
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