Car title loans can be complex and at times dangerous. But if you need money and your credit history isn’t the greatest, then car title loans can be a useful tool. Getting a loan of this type normally only requires that you own your car. So if an emergency happens you can leverage your car’s value for a short-term loan.
The thing is, you have to keep yourself safe. Sadly the car title loans industry doesn’t have the best reputation due to people trying to take advantage of the system. Before considering a car title loans ask these five questions to make sure you stay safe.
Ask About Licensing
Any business that’s working in good faith is going to have their paperwork in order. Plus any company that deals in loans or credit is going to have very specific paperwork they have to keep in order. When dealing with car title loans ask about the certifications the company you’re doing business with has. If they get evasive this is a huge warning sign to walk away. Any honest business isn’t going to mind you checking that they’re properly listed with the local regulators.
Ask For Contact Information to The Main Office
Just because you’re dealing with an office in Regina doesn’t mean they have their home office in the city. For all you know this could be a branch of a company that calls Halifax home. The point is this is hardly unusual. However, if a branch office seems uncomfortable with giving you an address or contact information for their parent company, they may have something to hide. Nearly every big business has a corporate contact address at their home office and car title loans are no different. If you can’t get information about a main office, be skeptical.
Remember you’re taking a loan out here and car title loans like any other loan have to be paid back. Car title loans normally have a quick payback window because they’re normally sold as emergency loans. So be clear about everything. Length of the loan, interest rates, any fees, how to make payments, and so on. Any good car title loans company is going to have a list of answers to common questions, so ask away, you’re not the first person to do so.
Check Reviews and Feedback
The Internet is a lovely thing. You can find just about any source of information no matter how mundane or unusual it may be. Plus it has given the customer a rather large soapbox to stand on and issue reviews. If you’re thinking of doing business with a car title loans company check their reviews. If a company is good the reviews will reflect that and if the opposite is true they tend to reflect that as well. The key is some people will leave bad reviews due to their own mistakes. So you have to learn how to tell what’s honest criticism and people just ranting because they are mad. However, legitimate complaints are often easy to spot.
Check The Better Business Bureau
A lot of companies live and die by their Better Business Bureau rating and proudly display them on their front door. A car title loans company is no different. While angry customer reviews are one thing, the BBB nominally fields complaints about issues that goes beyond simple bad business. Plus their ratings are a little more involved than an Internet review forum. Check the history, accreditation, and complaint history of a car title loans company before doing business with them. If anything jumps out at you avoid them.