If you’ve been considering taking out a short-term loan, you may have come across title loans. Someone probably warned you that if you get a title loan and don’t pay it back, the loan company can take away your car. While this can happen if you default, there are a number of steps you can take to avoid missing payments. The first step is to pick the right car title lender.
How do I pick a title loan lender?
You need to be careful when selecting a title loan lender. It’s important to do your research. There are a few things you can look for that may indicate a reputable title loan lender:
- Well-established: A company that has been around for several years is likely to have a better reputation than one that opened recently. They will also likely want to protect their reputation for being an honest loan company, especially now that businesses can quickly be ruined by a few bad reviews on the internet.
- Larger company: A larger company is more likely to be well-established. They may also offer a greater variety of loan products and have things like a dedicated customer service department.
- Strong customer service: A reputable title loan lender will never pressure you to accept a loan. Not only that, but they should be willing to explain any part of the loan agreement to you. Ideally, they would also take a look at your unique financial situation to craft a loan that fits your life.
Let’s say a borrower looks for a company like that meets those requirements. If they decide to not pay their loan back, they still might have their car repossessed. How this process works varies from state to state, but there are a few things that most states have in common.
What happens when a loan company repossesses a car?
When a loan company repossesses a car, they may have the option to auction it to recover the money they lent the borrower. State law normally dictates the exact process. In some states for example, the lender must send the borrower a right to cure notice. This will say that the borrower has a certain amount of time to pay the balance of the loan, otherwise the lender will proceed with the repossession. In other states, lenders can repossess cars the moment the borrower goes into default. Some states require lenders to inform borrowers that they will repossess their car, others don’t.
Once the lender has the car, they may have the option to auction it off. After the car is sold, the proceeds are put towards the debt owed to the lender. Depending on the state, that may be the end of it. Other states though, allow lenders to continue to pursue borrowers for payment if the auction didn’t cover the balance owed. In other states, any excess from the sale must be returned to the borrower.
Given the hassle this can cause both borrowers and lenders, reputable lenders take steps to avoid repossession. One such lender is LoanMart. In addition to having the characteristics listed above, they possess a number of other traits that make them a great lender.
Why should I get a title loan from LoanMart?
LoanMart provides customers with a number of advantages over other companies:
- Actively avoid repossession: LoanMart understands how important a borrower’s car is. Because of this, they work with customers to try and craft loan terms that will work with their unique financial situation. And if that situation changes, they try to work to develop a solution.
- Strong data protection: Because LoanMart is a larger, well-established company, they can afford to implement technology and procedures unavailable to smaller companies. This helps ensure that the only time anyone can see a borrower’s personal information is when it is absolutely essential for the processing of a title loan. LoanMart also never sells customer information to advertisers or marketers.
- Online application process: Like many title loan companies, LoanMart’s application process can be completed mostly online. Unlike other companies however, LoanMart doesn’t require borrowers to bring their cars in for an in-person inspection. Instead, LoanMart lets customers submit photos of their car.
- Second-thoughts policy: LoanMart understands that having an unexpected expense can be stressful. Because of this, if you are approved for a title loan from LoanMart and a day later realize that you didn’t actually want it, they let borrowers return their loan money in full with no penalty.
- Simple loan terms: LoanMart never writes balloon payments or prepayment penalties into their loans. This means you won’t owe an enormous payment at the end of your loan. Nor will you be penalized if you want to save on interest by paying your loan off early. The staff at LoanMart are also happy to explain any questions borrowers have at any point during the loan process.
- Competitive loan terms: LoanMart prides themselves on providing their customers with the best loan terms they possibly can. One of the ways they do this is by getting to know each borrower’s unique financial circumstances so they can find them the best loan1.
How do I get a title loan with LoanMart?
There are three main ways to get in touch with LoanMart about a title loan:
- Signup online
- Call LoanMart at 1-877-878-4923
- Visit a local participating store
After you’ve decided how you want to get in touch with LoanMart, to apply you’ll need to:
- Get your registration form completed
- Get your documents over to your LoanMart representative
- Sign your LoanMart agreement1
Being in need of emergency funds to cover an unexpected expense can be stressful. Thinking about losing your car can make it worse. If you do your research and borrow from a reputable title loan lender, they may be able to help relieve you of much of that stress1. Research your lender and let them help you get your finances back on track.