You must have seen ads which claim to offer you a loan immediately in lieu of your car title, especially addressing those who have had issues with banks and other traditional lenders to get a loan. The consumer protection agency of the nation, the Federal Trade Commission, advises you to wait there and understand the actual way a car title loan works. A car title loan will put your car on risk and in case you fail to repay the loan, the lender will repossess your car and you will possibly lose of your most valuable possessions after your home. Commuting to office and other places can become a big issue.
So, here we list down few vital points which you need to take into account when you take out an online title loan so that you may be sure about repaying the loan back on time. Let’s check them out.
- Know the kinds of payment options that are available
Wouldn’t you want to know the way in which the car title loan lender will take the payments from you? Will they take it straight from your paycheck or will you be paying them directly? You should also know the repayment term of the loan or the number of months through which the title loan will last. The longer is the repayment term for you, the lesser you will be required to pay in a month and that may become unbearable due to the compounding finance charges. Hence, do your best to make sure the title of loan ends as soon as possible.
- Enquire how long you will take to receive the proceeds of the loan
It may anywhere from few minutes to a couple of days in order to get the cash in hand. Does your online lender have a local physical branch? If yes, you can fill the application online and then visit their office to get the cash in hand as that will alleviate the entire process. There are even some companies which send cash into your bank account and even if they do, make sure they don’t charge you too much for bank ACH.
- Ensure you can continue with driving your car
Did you ever know that there are few car equity lenders that will need you to give you driving and ownership rights to the lending company until you are able to repay the loan? Some online lenders will even keep a tracking device on your car so that they may know where you are and where you’re going. As car title loans are getting more and more common, these are not being seen anylonger. Hence, make sure they allow you to keep your car when you take out a title loan.
Therefore, if you’re eager to take out an online car title loan, make sure you know all the details of the loan type so that you’re not deceived by any lending company.