1: Find out what type of payment options are available
It’s important to know how the car title loan lender will take the payments from you. Will they come straight from your paycheck or will you pay the company directly? You’ll also want to know how many months your auto title loan will last. Like other types of loans, the longer it takes to pay off your loan the less you’re going to be paying each month. The downside of that is the fact that you’re going to be paying more each month in finance charges. Do all you can to make sure your car title loan is outstanding for the least amount of time as possible.
2: Know what the online application & approval process is before you apply
Much like some of the other tips here, this is more to save you time more than anything else. Some lenders will allow applicants to complete the title loan application completely online. Others will require you to do an online application and complete a phone verification as well. Most companies that fund online car title loans will be able to verify your application in 20 minutes or less but some can take much longer. On top of this, you’ll want to know whether your lender requires a visual inspection of your car. Oftentimes this can be done when you pick up your check.
3: Be sure you know how long it will take to get your cash
It can take anywhere from a few minutes to a matter of days to have cash in hand from your online title loan. Does your online lender have a local physical branch? If so, you may be able to fill out the application online. This will enable you to pick up cash rather quickly at that location. Also, some companies that fund car title loans will send the cash straight to your bank account. If they do this make sure you find out how much they’re charging to start the bank ACH. Lastly, it pays to understand the process of handing over the pink slip. Each lender is different and they may require specific paperwork besides to your vehicle title. Each state has different procedures that must be followed when changing vehicle ownership or adding a lienholder to the pink slip. You can read all about what is required in California when you change ownership on a vehicle’s title.
4: Ask the lender what type of car they accept
You’ll want to do this before you fill out the online application and go through the process of getting qualified. Most lenders that offer car title loans online will accept vehicles that are newer than 2000. Some will allow vehicles that are from 1995 or sooner. The mileage on your car can be an issue as well. Definitely, ask your lender what their mileage restrictions are if your car has a mileage over 100k. Make sure your vehicle has enough equity. With that, there should be no issues when it comes to getting funded for a title loan online.
- Make sure you can keep driving your car
Did you know some car equity lenders will require you to impound your car with them for the life of your loan? Some online lenders will also install a tracking device on your car. This means they will also know where you are while driving the vehicle. We’re seeing less of this as car title loans are becoming more and more common. Be sure you get to keep your car while you’re paying your note off!