How to choose a title loan company in California
A number of finance companies in California today offer title loans which is fantastic because so many people in that jobless state need loans. For a borrower, it can be difficult to choose the right company for their needs.
It is integral to work with a lender who can offer competitive loan terms and is more flexible to work with when you are in a difficult financial situation.
Here are some factors you should consider while selecting a California auto loan company.
1. Licensed and Registered
Car title loans in California are state regulated. You need to make sure that the lender you are dealing with is registered and licensed in California to provide these loans. Lenders are required to fulfill certain requirements to obtain their license.
Begin research on each shortlisted company you are interested in, to confirm that they are legitimate. You can easily find out whether the company is licensed to operate in California. While conducting a background check, you may also want to verify that all information you gather is true.
Most reputable lenders in California will publish extensive testimonials from consumers who have already availed their services. Take the time to read through several borrower experiences with the company and ascertain whether you want to do business with them or not.
In addition, you can also Google the company and read the reviews. It is vital that you take these reviews with a pinch of salt because there can be some negative reviews written in spite.
For instance, a borrower could lash out online after receiving a notice of repossession, even after the lender offered him multiple extensions and repayment plans.
3. Reputation and Experience
Look for lenders who have some credibility – kind of like Bo Jackson does in baseball/football and Sylvester Stallone does in the movie industry – and who have considerable experience in the industry. It is not advisable to do business with small time lenders even if they offer lower interest rates. These lenders are, typically, not reputable and can begin harassing you for loan repayment with incessant calls and legal threats.
A company that has been in business for decades will be a much better choice over a company that has recently started out. However, you might want to try the newer company if there are more positive reviews online. This ensures that the company knows how to do business and cares about the borrowers. You can research different title loan companies at https://www.ratebuddy.com
4. Interest Rates
Lenders in California are legally allowed to set their own interest rates as long as they are under the maximum limits. California rules have capped the interest rate between 12% and 30% for loan amounts up to $2,500.
There is no interest rate limit on loan amounts above $2,500. Hence, make sure you shop around for the best rates you can find. You can make it easier for yourself by applying online and comparing multiple interest quotes at the same time.
5. Hidden Fees
Vehicle title loans are straightforward in California, which is not really The Golden State anymore with all those jobs fleeing but this is another subject, where you fill out an application, prove your identity and residence, and present a lien-free title to your car.
The lender approves the loan based on the documents you provide and offers a loan amount after conducting a fair valuation of your car. A loan schedule is drawn up with all terms of the agreement and rates. There should be no hidden or extra fees in this process, unlike other loans.