If you’ve ever considered getting a title loan, you may have wondered what the difference is between a broker and a direct lender:
- Direct Lender: A lender that takes the borrower through the entire loan process from start to finish.
- Broker: A broker connects the borrower with offers from a variety of lenders and allows them to select the offer they prefer.
When deciding where to get a title loan, one of the decisions borrowers have to make is whether to go with a broker or a direct lender. At first, it may seem like the obvious choice is to go with a broker. After all, they can connect customers with a variety of different lenders with different loan products. More choices is always better, right?
What are the advantages to getting a title loan from a direct lender?
There are a number of benefits borrowing with a direct lender provides:
- They take borrowers through the entire loan process: Unlike a broker, who eventually hands the loan application off to another company, a direct lender will assist borrowers from the beginning to the end of their loan.
- Personal information may be better protected: Brokers need to give applicant information to each company that they request a loan bid from. This is because the more loan companies they contact, the higher the likelihood they will find a loan they can sell. In contrast, direct lenders have incentive to keep applicant information from being spread around.
- Their fees can be lower: All title loans generally come with fees. And the more people involved in the loan, apart from the borrower and the lender, the more fees there will likely be. Removing the broker from the equation means borrowers won’t have to pay them a commission.
- Processing times may be faster: When borrowers contact a direct lender, there is little lag time between submitting an application, selecting a product, and initiating the loan process. This means they may be able to get their money in a shorter time than if they had to wait for all the documentation to be passed from one company to another.
- Flexibility: Brokers need to follow guidelines set by individual lenders. Because direct lenders are the ones setting the guidelines, they can ignore them when the situation demands it.
- Usually not paid on commission: Because direct lenders handle the loan from start to finish, they normally aren’t paid on commission. By contrast, a broker who is paid on commission may try to steer borrowers towards products that mean they’ll get a larger paycheck, even if they aren’t right for that particular borrower.
How do I find a direct lender for a car title loan?
The easiest way is to look on the internet. A good example of a direct lender is LoanMart. They have been providing title loans since 2002 and have helped over 150,000 people get a title loan2.
Why should I get a title loan from LoanMart?
There are a number of benefits to working with LoanMart over other title loan direct lenders:
- High Approval Rating1: LoanMart works with customers to try and find a loan amount, repayment schedule, and interest rate that works for their situation. Because of this, they may be able to approve borrowers that other direct lenders reject.
- No Early Repayment Penalties or Balloon Payments: Many companies punish borrowers for paying their loans back early and burden them with a massive payments at the end of their loan. In contrast, LoanMart allows customers to pay back their loans early if they want. Additionally, they divide both the interest and the principal over the life of the loan.
- Exceptional Customer Service: LoanMart ensures that every borrower thoroughly understands the terms of their loan. They don’t pressure customers to make a decision that they may later regret. They even provide borrowers a three-day grace period during which they can return their title loan money, possibly for a full refund4.
- No In-Person Inspection: Borrowers with busy schedules may find it difficult to make the time to take their car down to a title loan location. LoanMart understands this. To make borrowers’ lives easier, LoanMart usually accepts photo submissions of cars in lieu of inspecting the car in person.
- Large Company: Because of their size, LoanMart offers a number advantages over smaller companies:
- Information Security: LoanMart has the infrastructure and procedures to help protect customer information, making sure only the people who absolutely need to see it can access it.
- Large Online Presence: LoanMart’s extensive online presence allows borrowers to not only access a huge range of resources that help to answer title loan questions, but most of the title loan application process can be completed online.
- Mobile App: Using LoanMart’s app, borrowers can manage numerous aspects of their title loan. They can do things like look at their payment history, update account or contact information, and even make a payment.
- Actively Avoid Repossession: LoanMart understands how important a borrower’s car is. They use their vehicles to get to work, run errands, pick up their kids, etc. Because of this, LoanMart works with customers not only to help ensure that they are getting a loan schedule that they can afford, but may be able to aid in making adjustments if the borrower experiences an unexpected financial hardship.
Getting a title loan is a big decision that brings a host of other big decisions with it. Now that you know some of the benefits of using a direct lender to get your title loan, and about a specific direct lender, LoanMart, you’re much better equipped to take your financial future in your own hands.