Online title loans are becoming increasingly popular and it’s no wonder why. They are so easy to apply for and there is now no need to physically visit a lender who specializes in car title loans when you can just apply for title loans online. But, like any process that involves your detailed personal and financial information, you need to practice due diligence to assure that it is not compromised and that you are in fact dealing with a reputable lender. You don’t really know what a lender is doing with your personal information once you hand it over to them and how could you be sure that they won’t use it for illegal activities or even sell it? Let’s take a look at some information regarding this and what safeguards you can put in place when applying for online car title loans.
Most people that read this article know what that a car title is essentially the same thing as a pink slip. They know you can borrow a small amount of money for a short amount of time using your car as collateral. As the name implies, you have to give the title loan companies your pink skip to your vehicle so that they can gain possession of it should you fail to repay your loan. You also get to retain possession of your vehicle throughout the entire duration of the loan and it will only become your lender’s property should you fail to repay it. This is a very common practice when it comes to borrowing money and most people are happy to do this because they will never risk losing their car and will pay back the money as fast as possible.
Exercise Caution With Car Title Loans Online
Online title loans are online versions of your typical pink slip loan. Of course, it becomes an online loan when you visit websites on the Internet where you can apply for car title loans. The application process has been streamlined to be incredibly quick and easy and this method of applying for a title loan is fast becoming popular. All you have to do is submit your relevant documentation relating to your identification and vehicle and you can even be pre-approved in less than one day with some lenders.
How Could My Personal Information Be Compromised?
As with any important financial decision in life, it’s imperative that you do everything as safely as possible so that you don’t potentially cause detrimental circumstances for yourself. This is no different when applying for online title loans and you need to be sure that you are dealing with a reputable company. Here are some practices that dodgy title loan companies who deal with car title loans online may engage in:
Selling Leads For Online Car Title Loans
This is when the company will pass on your information to other lenders so that they can get in contact with you to try and win your business. The title loan companies that engage in this practice are more than likely not actually lenders and they merely act as an affiliate in exchange for a commission. They could be paid on a per lead basis for every person that they refer to a lender or they could also be paid on a per sale basis for every successful conversion the lead buyer makes.
Working With Credit Repair Companies
While this one is not as common, it’s quite a sophisticated scheme that can net a title loan lender big bucks. This can be done by either a lender or an affiliate and what they will do is pass on your information to credit repair companies or freelancers who will then contact you in regards to your credit score. Considering that there are no credit checks required for people who want to get car title loans, there is a high chance that most of the leads that come through have a bad credit rating. While this practice is highly illegal, it doesn’t stop unscrupulous lenders, affiliates, or credit repair companies from doing this.
One of the most common and easiest things to do with your personal and financial details is to steal your identity. The lender will already have many forms of documentation that they could, in theory, use to do things in your name. They will know your full name, date of birth, address, employment, wages, funds, and possibly have other documents such as utility bills and bank statements too. All companies that offer online title loans and affiliates are bound by very strict laws regarding issues like this. However, there is always a chance that someone can go rogue and have an ulterior motive with your title information.
Best practices to mitigate aggressive title loan companies
Always run background checks on the website and title loan companies that you are applying for title loans online with. You can easily search Google to find information about who the website is registered to, who the company is registered to, what their physical address is, and other related business information. Some websites will have a live chat system integrated into them so you can talk with a representative. Take this opportunity to ask as many questions as you wish to make yourself feel better about doing business with them. If not, you may be able to get a phone number or at the very least an email address. If there is no form of contact whatsoever displayed on their website, then you can steer clear of them as this is highly suspicious. Check to see if the website is an umbrella lender of a larger entity of title loan companies. Down the bottom of the site, there is what’s called a ‘footer’ and this section will typically contain information such as contact details and the name a company is registered under. Google the company name as mentioned in the first point above to see if they are a stand-alone provider or part of a larger network.Read their terms of service. This page will either be located in the footer or you will be provided with a link to it during the application process before you complete it.
Read every last word so that you can understand exactly what you are getting into. If you have any questions you can call, email, or use their live chat system. Lastly, search the company name or website in Google to look for any bad online title loan reviews that have been left about them. While these can be faked in some situations, if there are reputable review websites such as Trustpilot then you know these are authentic and genuine testimonials from legitimate customers.
Why It’s Important To Find A Reputable Title Loan Company
At the end of the day, it’s your money and it’s your life. Not going through a reputable company that specializes in online title loans could leave you in a very strenuous situation that impacts you for a very long time. You could be receiving endless phone calls from companies your original lender or affiliate has sold you to in the form of a lead, or you could be in a situation much worse where your personal details get in the wrong hands and the authorities have to get involved. When making such an important decision in your life, take the extra time to research your potential lender so that you can have peace of mind knowing that you believe you are in the right hands. That little bit of extra time that you put in could be the difference between you getting your car title loans done with ease. On the other end of the spectrum you may end up with some serious legal and financial troubles as a result.