Top 5 Things to Consider When Considering a Title Loan

If you are strapped for cash and searching for a short-term loan solution, one of the options that many people turn to is Ft Lauderdale title loans. These are loans that utilize a vehicle title for your car, boat, personal watercraft, motorcycle, or another vehicle as collateral. These types of loans are very helpful for solving short-term cash flow problems. When deciding if a title loan is right for you, there are a few things to consider. Here is a list of the top 5 things to take into account when attempting to acquire a title loan.

Make sure you have a clean title. A clean title is one that has no current financing or liens against it. This is imperative in the process and it is impossible to get the loan otherwise. This is to ensure that the vehicle is proper collateral, should you default on the loan for any reason. If the car is still technically owned by some other entity, the title loan company would not be able to recoup their losses for the loan.

Assess the amount of cash needed. Make sure that you get the proper amount of money necessary to handle whatever business led you to this decision. It is also important that you are conscious of what you are able to pay back to the company so that you do not forfeit your car. Get the proper amount of money without borrowing too much to ensure that paying the loan back in the predetermined timeframe is not an issue. No one wants to lose his or her car in addition to any other financial struggle, so this step is very important.

Research all prospective loan companies. This step can be, by far, the most important. While there are many differing opinions on the value of title loans, dealing with an unethical company is surely a way to have a problem. When utilizing an ethical company with good reviews and who provides this service in a non-predatory way, it is extremely helpful to people who may be in a financial bind. Make sure to seek multiple third party reviews that are unaffiliated with the company to make sure that you are dealing with a company that plans to provide you the service without trying to, in some way, swindle you.

Have proper paperwork and documentation. Besides the car title itself, there are a few other documents that the borrower must provide to acquire the loan. Make sure to have a valid driver’s license, proof of insurance, and proof of residence. Many title loan companies will also require that you provide information from your pay stubs, which is to ensure that you are able to pay off the loan. Many companies will also ask you to provide references and a spare key. When researching the companies, make note of everything that they require to receive the loan and make sure you have all the proper documentation to acquire the loan

Review and stay on top of a payment schedule. It is crucial to know how the payment process works with your loan. Ask as many questions as possible during the loaning process so that you know how much of the payments are going to interest and how much to the principal, as well as how much is due in each payment. The worst outcome of this scenario is that you lose your car and being very clear on the payment information can ensure that does not happen.