How Title Loan Companies are Impacted by Coronavirus
In this current climate, things are pretty financially strained for most. While some have a bit in the bank to last them a while, there are others that will be feeling completely overwhelmed by the entire thing and aren’t too sure how they’re going to make ends meet from one week to the next.
If you’re in the latter boat, then perhaps it’s time to start thinking about what your short-term loan options are. Let’s take a look at what you need to know about title loan companies so that you can find the best option for your needs.
1. Think About Its Reputation
Because title loan lending is one of the most popular forms of lending beyond going to the bank, there are many different options for you to choose from. For a lot of people, this many options to choose from can be more stressful than exciting.
One way to try and break things down when thinking about the right title loan company for you is whether they have a good reputation or not. These days, we rely a lot on company reviews online, so before you sign up for anything, it’s worth knowing whether they have a good reputation or a bad reputation.
2. What Are They Asking For?
There are a few things to consider with the initial process of getting a title loan. This is because every title loan company out there asks for something different. Some title loan companies ask to see your credit score, but this isn’t that common.
Others ask for a large fee upfront, and sometimes they won’t accept your application until you pay the fee. This doesn’t guarantee that you will even get the loan, so be wary of what they’re asking for.
3. Is the Process Easy?
The entire point of a title loan is that it’s quick and easy. It’s a great short-term loan option if you need to get your hands on some cash quickly. This is, therefore, why one of the first things you need to know about a company is: is their process easy?
Traditional lenders like banks will ask for a lot of paperwork, whereas title loan lenders traditionally don’t. If things are starting to get a bit too complicated and you’re not sure what you’re being asked to provide, then perhaps it’s worth going with someone else.
4. Check for Hidden Fees
Every car title loan company is held to rules and regulations that the state sets out around lending, which means that they can’t legally charge exorbitant fees upfront, or have interest rates that are through the roof.
However, there is still a chance that the title loan company you’re considering has hidden fees that you won’t get stung with until further down the road. This is why it’s important to know if they have any, and when you will have to pay them. This way, you won’t get a nasty surprise when you’ve already signed up.
A short-term loan is a perfect option right now as we all struggle financially through this process. Remember, the more you know about the company you’re considering, the better off you’ll be.