Everyone has a financial dream that he/ she wish to achieve at one time. However, with the numerous financial issues that people with small businesses often come across, it may be significantly harder to get yours up and running without finding help from somewhere. However, if you have a luxury car, you can apply for car title loans that will help fund your business and see it grow to the next level. Car title loans require that you have a car with a clean title under your name that will serve as collateral for your loan.
Here are some other 7 important things that you should consider when applying for car title loans:
1. Conduct Thorough Research
While it is true that many lenders are available, not all of them have your best interests at heart. Some are there to defraud you of your hard-earned cash. In that case, you should consider lender that has a good reputation and give loans at lower rates. 5-star car title loans are one example of such lenders that provide quality services. Their application process is easy, and they have a faster approval rate.
2. Understand the Application Process Well
Unlike other types of loans, the application process for a car title loan is very simple. Moreover, its approval rate is faster (normally less than an hour) and you can complete the process online. However, you must take your time to understand the application process vividly and provide the necessary details needed.
3. Read the Fine Print
Most lenders hide important details in their fine prints. If you fail to notice these details, they may come back to haunt you when the time for repayment comes.
Some of the details to look out for in the fine prints include:
- The terms and conditions that may lead to an increment of your interest
- How the interest is calculated
- Whether or not your car will be repossessed after a missed or delayed payment
- What is the penalty for delayed or early payment?
4. Inquire about the Payment Options
As is the case with any other type of loan, you should inquire about how the lender expects you to make the payments. The mode of payment is also important. For instance, will you be required to make direct payment, or the cash will be withdrawn from your paycheck? What is the duration of your loan? Remember, a longer period means that you will make lower monthly payments, but the cost will be higher in the end. In that case, we advise that you should opt to repay your loan within the shortest time possible.
5. Find out the Preferred Type of Vehicles
Different companies offering car title loans accept different types of vehicles that serve as collateral. In that case, it is important to inquire whether your preferred lender accepts you type of car. Today, most companies prefer cars that were manufactured after 2000 but some still accept older cars. Moreover, the mileage covered by the car also plays a role in determining whether you will qualify for the loan. Generally, it is important to ask all the questions before beginning the application process.
6. Keep Your Vehicle
Inasmuch as you want to boost your business, it is important to keep driving your car as well. Look for a lender that will allow you to have your vehicle despite the fact that you have used it as collateral for your loan. Today, it is not in the habit of lenders to keep your car anyway. This way, you will be able to repay your car title loan without accumulating others. In whatever you do, inquire about everything that you may have trouble understanding before signing up for anything.
7. Keep it Legit
Regardless of how good a deal might be, always take care to do everything by the book. In some cases, you may need a lawyer to take you through the process and ensure that everything runs smoothly. You do not want a situation where you will be in trouble with the law while at the same time you are struggling to repay your loan.
A car title loan is one of the ways to get your small business up and running. However, you will have to consider the factors above to ensure that you are signing up to the right deal. Conduct thorough research on the best lenders available, inquire about everything and above all, keep your vehicle.