Generally, if a borrower has a good credit history, he or she can expect to get a wide range of loans. The good news is that title loans can be obtained even with a bad credit rating, and applying for them is convenient and easy.
The loan amount depends on the value of the car, and you need to have a car in good condition to qualify for the loan. As a borrower, you are only pledging title to your car. You can continue to drive the car, but the title is returned after the loan is paid off in full, including interest.
Tips to Get the Best Car Title Loan in 2022
Getting a secured car loan is no easy task, given that there are so many places to choose from. With the development of the Internet, it is only natural that these options will only expand over time. Before making an important financial decision, you need to choose a Personal Loan Broker responsibly. Here are some tips to help you find the best car title loan.
Pay attention to the reputation of the company
To keep the decision from being too difficult for you, you first need to find out how reputable the company is. When you start choosing car title loans online, you should do a little research to decide which company you are willing to work with.
Think about what the car title loan company is asking for
Make sure you don’t get swept up in the “pay now, get more later” type of business. There are plenty of non-traditional lenders who ask for large upfront fees. Some companies won’t even accept your application before you make any payment. That being said, there is no guarantee that you will get a loan at all.
Consider if the process is easy and simple
Unlike traditional lenders who require you to fill out tons of paperwork, getting an online title loan is easy and only takes a few simple steps. The less paperwork, the faster you’ll get your money. A car title loan without proof of income is real, you just need to demonstrate your ability to pay off the loan later.
Consider how quickly you will get the car title loan
Another tip to consider is how quickly your potential lender can approve your loan. Many non-traditional lenders promise quick payments, but may require you to pay a large amount before they will grant you a loan.
Think about the privacy of your information
With the current state of technology and security, it is good practice to research a potential borrower to protect your information and identity. The more paperwork involved in getting a loan, the more vulnerable you become.
Good Friend Loan provides you with secure, confidential and fast services. With them, you can always be sure that your data is secure.
Make sure you have a hassle-free way to repossess your car
This tip may be overlooked, but it is very important. It’s about how quickly you get your car back when you get a secured auto loan. Some companies require you to give them your vehicle, but how can you make money if you can’t use your car?
Car Title Loans — facts and stats for 2022
- Over 9.4% of U.S. consumer debt is accounted for by auto loans. That number may not seem like an outrageous one, but keep in mind that auto loan debt is about $1.46 trillion, and it has been rising steadily every year since 2011. The only year when there was a slight dip in the debt accumulation was 2020, at the peak of the pandemic.
- The same type of auto loan can vary by 3% depending on whether the car is new or used. Interest rates reflect the condition of the car. For example, let’s say you can purchase a new car at a rate of 2.99%. If you bought that same car from a private seller, many traditional banks would offer 5.99% or more for the same loan.
- Average rates on subprime auto loans range from 9% to 20%. Applicants with excellent credit scores can still expect favorable rates. Unfortunately, this is not the case with subprime loan applicants. If your credit score is less than 760, your chances of getting such low rates drop.
- New vehicle pricing is up 12.2%, and used prices are up more than 40.5%. Along with rising interest rates and loan payments, new and used vehicle pricing rose sharply between 2021 and 2022. The most unbelievable thing about this statistic is that used vehicles have almost doubled in price. Again, this comes back to supply issues. If a person has the ability to find a new vehicle, they are better off buying it for the price they would pay for a used one. However, there is a good chance that they will not get exactly what they want.