If you are eligible to receive a title loan and borrow money based on the worth of an owned vehicle, be sure to conduct the proper research before taking out a loan! Title loan companies can make a lot of promises, some designed to take advantage of unwary borrowers. Organize your title paperwork thoroughly to prove your claim of ownership, and take a little time to review nearby title loan organizations for authenticity and customer satisfaction. Closely consider these 5 points before making a decision:
1. Company History: Always review the history of a title loan company: Thanks to Google, this should be an easy process! Check to see how long they have been around, how large of an organization they are, and who they are affiliated with or owned by. Generally speaking, lenders that have been around for years and are large organizations directly connected financial lending are the best option. You do not want to use a small title loan company that is more interested in trading loans with large players than in actually managing your loan.
2. Social Review Status: The Internet provides another major benefit - the possibility to check social reviews of nearly any company. Look up online reviews for your title loan company and search for it in Facebook or on Twitter. Examine the results closely: Are there a lot of complaints about the company? Why are people complaining - is it their own inability to pay back a loan, or does the business really have poor customer service and unethical loan management? Dive into written reviews to find real-life examples and take everything with a grain of salt.
3. Legitimate Rates and Periods: Title loan practices vary so much it can be difficult to pinpoint what “fair” rates and payback periods look like. Search for signs that the lender wants you to pay back the loan on time instead of trapping you in a cycle of every-higher loans and interest rates. Because title loans are so short and on-demand, interest rates are naturally high, but ethical loan companies will not try to trick customers with poor credit into making poor lending decisions. A four-week payback period is common, so try to find a company that offers payback around this general month-long mark.
4. Online Integration: Whenever possible, choose a loan company that has a strong online presence, particularly the ability to pay back your loans with online payments. If you can make payments through a smartphone or on a computer - and if you can receive email warnings or reminders about due payments - it will be far easier to manage your loan and the chances of a repossession will drop dramatically. In our world of digital payment systems, there is no excuse for a title loan company to not offer online service integration for their customers.
5. Watching Out for the Customer: This is a general point, but still valuable. Examine marketing materials and the lender’s online presence. Do the messages support customer empowerment, education, and loan management, or are they more predatory in nature? Lender websites and customer service representatives should always make information clear and easy to find, instead of trying to cover it up and make the loan as quickly as possible.
Amy Marston is a professional blogger that provides financial advice and loan information. She writes for Title Loans of Savannah, the best place to get online title loans in Savannah GA.