There are a lot of car title loan lenders around. This is mainly because lenders are starting to understand that people continue to have financial difficulties but can’t turn to regular lenders due to their credit status. As such, these types of lenders have become some of the most popular loan types out there.
How Car Title Loans Work
Companies that offer car title loans in San Jose are a lot more lenient than credit card companies or banks. This is because of the type of loan they offer. Basically, these types of loans are secured against your vehicle, which means that if you do decided not to pay your loan back, they will simply take your vehicle away from you. However, you don’t actually have to hand your car over. Just the title deed will do.
The loan, as such, is incredibly efficient and can be applied for online. If you are accepted, and it is unlikely that you won’t be, then you should have the money in your account within no more than 48 hours. The only risk is that you apply for a loan through a company that you haven’t checked out. Indeed, there are a few things that you should consider first.
Things to Consider before Applying for a Car Title Loan
1. Shop around. If you have never applied for this type of loan before, it is best to get some advice from other people who may have had some type of loan in the past themselves. Trusted advice is the best form of advertisement.
2. Write down a list of the possible options that are out there. Your friends and family may recommend you go with a number of different lenders, but they may also tell you stay away from certain ones.
3. Do some research. Check on the information that you have received from others and also make sure you visit the Better Business Bureau website to see whether the company has received any complaints or is under government investigation. You could also check the Consumer Affairs website.
4. Compare notes. Now that you know which companies are genuine or not, you need to visit their websites and look at their individual features. Look for things such as interest rates, payment terms and conditions, fees and so on.
5. Spend some time weighing up the different options you have. You need to find the company that offers you the most affordable loan but that is also the most trustworthy. For instance, one company may have a low interest rate, but force you to hold the loan for three months minimum, meaning you will actually pay more than with a high interest rate loan that you can pay back after 30 days.
Car title loans are becoming increasingly popular and, luckily for you, increasingly regulated. This means that you don’t have to worry as much about getting scammed anymore. However, doing a bit of research yourself is always a good idea.