Did you ever try to obtain a loan for jumpstarting a business or qualifying for an education loan or to settle few minor and major personal financial issues? If yes, you must be aware of how difficult the process is. Despite all the promises to receive a handsome amount for meeting your troubles, taking out a loan isn’t all roses. There are several impediments on the road of acquiring loan and most don’t even get to see the light at the tunnel’s end.
To solve this issue, vehicle title loans were designed as the process of obtaining such loans is less stringent. To take out a loan against the title of your car is called a car title loan. To know more on this kind and how you can grab the best deal by averting the pitfalls, read on.
- Be aware of the payment options that you’ll get
Before you take out a vehicle title loan, make sure you enquire about the way in which the lender plans to offer you a repayment plan. Will it be through direct payment or will the amount be directly debited from your paycheck? How long will your car title loan last? Similar to other loans, a longer time period will mean lower payments but you have to pay more on finance charges. So, a short term loan will be a wiser option.
- Determine whether there’s any repayment penalty
With regards to car title loans, often it is seen that repaying a loan ahead of the time can have bad impact. This means that even though you come up with some extra amount of money, you might be penalized if you prepay the loan before the completion of the repayment term. Lenders look forward to make huge profits from such deals. But you should be aware of this prepayment penalty when you borrow the loan.
- Know in detail the approval and online application procedure
There are some online car title loan lenders who have a process of application which is completely online while some others may even call you for verification. The entire process takes around 20 minutes to an hour. Before you decide finally, ensure knowing everything about the online application process.
- Make sure you can continue driving your vehicle
Suppose you’re taking out MIA title loans, you should check that the lender permits you to continue driving your vehicle even after you’ve received the proceeds of the loan. There are some lenders who allow you to use your car but attach a tracking device to your car so that they can monitor every move.
It can’t be denied that adding such tracking devices are gradually becoming less common with the gaining momentum of car title loans. Nevertheless, when you approach a lender for taking out a title loan, make sure you follow each of the above mentioned advices and tips to make sure you sneak the best deal on the loan.