9 Things You Should Find Out About Your Car Title Loan Lender

Car title loans in San Jose are a booming business. Many people who do not have the time to wait for long periods for their bank to process a loan are opting for car title loans. There are also those who have bad credit and they cannot access bank loans. Such people find car title loans convenient because they can get money in one day using their cars as security.

When applying for a car title loan, you should have the necessary information to ensure your loan application is a success and that you are working with a reputable business. You should find out the following:

1. How long the company has been in business

Though there are benefits to dealing with new businesses, a company that is well reviewed by its customers and with a good track record is a safer bet for you.

2. How their rates compare to others in the market

Compare the rates you get for your car title loan with the rates offered by other businesses in the area. Settle for the one that offers the lowest rates.

When it comes to interest rates, even the smallest percentage variance can make a huge difference in your total loan repayment amount.

3. Do they maintain a relationship with the credit bureaus?

You can start to repair your credit record based on your financial relationship with your lender. By paying your loan on time, you will improve your credit score.

This is however dependent on whether your lender reports to any credit agencies.

4. Inquire about penalties for early payment

Some lending institutions will penalize you for paying the full amount early. Find out if this is the case for your car title loan.

There are also cases where early payment is encouraged, and even attracts lower interests. If you find that this is the case, try to pay your loan early and enjoy lower interest rates.

5. Requirements

Requirements for successful loan application differ from one lender to another. However, for most car title loan lenders, all you need is to have a car that is in good condition and be willing to pay back on time.

6. Can you qualify if you are still paying for your car?

You might have a car but are still paying off your car loan. Find out if this is okay with your lender and if you will qualify for a loan without any complications.

7. What happens when you have preexisting loan commitments?

You might have a loan with another car title loans company. This might influence your ability to borrow or might subject you to less favorable terms.

8. Does your employment status matter?

A critical consideration for every creditor is the borrower’s ability to pay back the borrowed amount. This might incline some lenders to insist on only lending to employed people.

Other lenders might be flexible on such matters. Look for a borrower who best suits your employment status.

9. Minimum and maximum loan amounts

The minimum and maximum amounts you can borrow in each state vary. Avoid borrowing an amount that is too small or too big.

 

Once you know the above, you will be better placed to judge if a lender is the right one for you.