Factors to Consider When Looking for a Good Car Title Loan
A loan is an amount of money you have borrowed from an individual or a financial company. One may be forced to borrow a loan in case he/she wants to pay school fees for his/her kids, own a car, cater for the family or pay some medical bills. The following are some types of loans; student, mortgage, car title, payday, consolidated and personal loans. We shall look at the car title loans in this article. The car title loan is a loan where the borrower submits a car title as the security for the loan. It is only after the borrower has paid back the loan that he/she will get his/her car title back. The following are factors to consider when looking for the best car title loans.
A good car title loan company should have a license. The financial activities are regulated by providing the finance companies with licenses. A license is only issued to a car title loan company which has availed all its registration details and attained the set standards. You should never borrow a car title loan from a company which is not licensed.
The best car title loan companies have lower interest rates. The interest is the price you need to pay for borrowing the loan and the amount is given to the lender together with the principal. When compared to other types of loans, the car title loans have higher interest rates but a financial company should not hike the rates. Since there are many companies which offer car title loans, a borrower is supposed to compare the interest rates of a number of companies before settling on one.
The best car title loans companies do not consider the credit history of the borrower. A credit history is a history of how an individual has been repaying back his/her loans. A bad credit history prevents one from getting being issued with a loan. Since a car is supposed to act as the security, a car title loan company should not consider the credit history.
Quick loan processing is another feature of a good car title loan company. You don’t have to wait for a number of days in order for your car title loan to be approved and processed. Borrowers are advised to look for financial companies which process the car title loans within the first 30 minutes after application. Reducing paperwork is the best way of speeding up the car title loan application and processing. The company should also allow virtual application of loan which is done on the internet.
Improved customer service is another attribute of a good title loan company. The staff in the company should have good communication skills.