Online title loans are becoming popular and it’s no wonder why. They are easy to apply for and there is now no need to visit a lender. Using a pink slip as collateral for a loan is different from an unsecured installment or payday loan. Any company that offers car title loans should be able to process your application with 24 hours. That’s why you may want to think twice about short term lending when you can apply for title loans online. Be careful with any process that involves your detailed personal and financial information. Borrowers need to practice due diligence to assure there is no compromise. If you find positive reviews online then you are probably dealing with a reputable lender. You don’t know what a lender is doing with your personal information. Once you apply and hand it over you can’t be sure that they won’t use it for illegal activities. Let’s take a look at some information about ways to protect your financing decision. We will consider safeguards to put in place when applying for online car equity loans.
Most people reading this article understand a vehicle’s title is 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 a pink skip to your vehicle. This lets them gain possession of it should you fail to repay your loan. You also get to keep possession of your vehicle throughout the entire duration of the loan. The car will only become your lender’s property should you fail to make payments and they ultimately repossess it. This is a very common practice when it comes to borrowing money. 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. You can also bypass a vehicle equity loan. Consider other funding sources such as payday loans or cash advances if you don’t feel comfortable with our five safeguards below. If you need more cash you will want to consider an installment loan or bank or credit union funding.
Exercise Caution When Considering A Title Loan Company
Car title loans are by definition an online version of your typical pink slip loan. Of course, it becomes an online loan when you fill out an application for secured financing. The application process is simple and easy and standard across most legitimate companies. This method of applying with an online title loan lender is fast becoming popular. All you have to do is submit your relevant documentation relating to your identification and vehicle. 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 to do everything safely. That way you don’t cause detrimental circumstances to yourself. This is no different when applying for fast online title loans. You need to be sure that you are dealing with a reputable company. Here are some practices that questionable financial service providers take part in. Before you sign off on a pink slip contract, make sure your lender doesn’t take part in these scenarios. Only deal with car title loans online from reputable and licensed services.
Passing On Marketing Information For Online Title Loans
In this type of common situation, a company will pass on your personal details to other financial companies. Most banks and credit unions also do this to get in contact with you. Any company that takes part in this practice is not an actual lender. They are in fact a 3rd party marketing service. These companies act as an affiliate and get paid for an online application that gets submitted. They receive payment on a per lead basis for lead submission they send over to companies that fund loans. Some get paid on a per sale basis for every successful conversion the lead buyer makes.
Working With Companies That Also Want To Fix Your Credit
While this one is not as common, it’s quite a sophisticated scheme that can net a title loan lender big bucks. This can occur with both title loan lenders and marketing services. They will pass on your information to any 3rd party service that wants to use the application information. At this point, you will start hearing from companies who contact you about your credit score. Consider that most licensed vehicle equity lenders won’t run a FICO score check for people who want to get car title loans. In almost every application we see, the person applying for a high interest loan already has bad credit. Contact your lender and make sure you have a full understanding of what happens to your personal data and financial information.
One of the most common and easiest things for a scammer to do is to take your information and sell it to the highest bidder. Buyers could include legitimate companies, but often they consist of people who are looking to compromise identity. The lender will already have many forms of documentation they could use to steal your identity. Take a few minutes and do a search online for any term related to identity theft. You will for sure have thousands of results from people who had no clue until it was too late. It can take months and years to fix your credit score and budget when your identity gets stolen. Take safeguards to avoid this scenario by limiting the number of companies you apply for online title loans with.
Best practices to deal with aggressive lenders
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 whom the website is registered to. Look up who manages the company and what their physical address is. With research and comparisons, you may often find 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 steer clear of them as this is suspicious. Check to see if the website is an umbrella lender of a larger entity of title loan companies.
Read up on all the title loan lenders in our directory so that you can understand exactly what you’re getting into. If you have any questions you can call, email, or use their live chat system. Search the company name or website in Google to look for any bad online title loan reviews that are about them. Be careful as these can be faked in some situations. We see this often with payday loan companies and installment lenders. Use reputable review websites such as Trustpilot and google reviews. With these, you will know they 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. The hit to your finances and credit report can impact you for a very long time. You could be receiving endless phone calls from companies. Or your original lender or affiliate has sold you personal information. You could be in a situation where your personal details get in the wrong hands. Sometimes it’s best to contact the authorities and have them get involved. When making such an important decision in your life, take the extra time to research your potential lender. With that, you have peace of mind knowing that you believe you are in the right hands. That little amount of work can 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.