Title Loans: Direct Lender vs. Broker

If you’re thinking about getting a title loan, you may be wondering if there is a difference between going through a broker or working with a direct title loan lender. Both brokers and direct lenders may be able to help you get a car title loan. However, their processes and services are different:

• Brokers or loan referral services can help you by reaching out to one or several lenders to solicit loan offers on your behalf. They don’t however lend money to borrowers.
• Direct lenders are financial institutions that offer their own loan products. Direct lenders are companies that hold required lending licenses, define loan eligibility criteria and loan requirements, and actually lend money.

How Do I Get A Title Loan Through a Broker?

When a borrower approaches a broker about a title loan, the broker will take the borrower’s information and reach out a network of lenders. Title lenders can have a variety of specialties. For example, some may specialize in lending on older cars, or high-value loans, or only operate in certain states like Florida, Texas or Virginia.  Lenders that are interested in the borrower’s loan application will send the broker a loan offer or otherwise indicate that they are willing to work with the applicant. Loan offers will be presented to the borrower, who can select whichever one they prefer, or decide to walk away. Assuming the borrower chooses to move forward with one of the lenders, the broker usually steps out of the picture. From that point onwards, the borrower will interact with the lender, just like a title loan customer that applied directly with the lender.

What Are The Pros and Cons of Using A Title Loan Broker?

On the surface, it may seem like a good idea to use a title loan broker. After all, with one request, you can get loan offers from several lenders. However, a loan broker is not guaranteed to find you the best offer.

Potential Pros When Using A Title Loan Broker

• Access to several lenders: As mentioned above, a broker or loan referral service usually works with a network of direct lenders. Therefore, using a loan broker service can provide access to loan options and offers from multiple lenders.
• Efficiency: Using a loan broker can be an efficient way to search for title loan borrowing options and to shop around. The broker can take care of submitting a loan inquiry to several companies, which can be more efficient for the applicant and save them time.
• Expertise: Some auto title loan brokers may have a good understanding of the title loan market and therefore be able to guide the applicant, taking into account the applicant’s needs and the lenders’ current loan eligibility criteria, requirements and available loan terms.

Potential Cons When Using A Title Loan Broker

• Misaligned interests: Your interest as a borrower is to find the best loan option for your needs, which may be the option with the lowest interest rate, APR, or monthly payment, or the highest loan amount. Depending on the broker you work with, their primary interest may be their potential commission. Brokers may prioritize their broker commission over finding you the best option for your needs.
• Privacy and data concerns: Applying for a loan, or shopping for a loan with the help of a broker, requires sharing of sensitive personal information such as your date of birth, Social Security Number, driver’s license number and income information. When using the services of a broker, this information will be widely shared with the lenders in the broker’s network, and additionally also be stored by the loan broker. Many consumers may prefer having their sensitive data stored by as few companies as possible.
• Excessive follow-up communication: After a broker shares a potential applicant’s contact information with multiple potential lenders, the lenders may all start to reach out to the consumer at the same time. Say a broker shares an applicant’s phone number with 5 lenders, all 5 lenders may start calling and emailing the applicant immediately and several times a day.
• Potential broker fees: While loan brokers commonly get compensated by the lenders for their services, some brokers may charge consumers a broker fee, finder fee or similar for their services.

What Are the Benefits Of Getting A Title Loan With A Direct Lender?

There are a number of benefits to getting a title loan through a direct lender or loan servicer instead of using a broker:

• No broker fees:  most title loans come with various fees. One fee that won’t apply if a borrower chooses to work with a direct lenders is a broker fee. Therefore, working with a direct lender can potentially lower the cost of obtaining a title loan.
• Borrower personal information is less exposed: When applying with a direct lender, potential borrowers only share their sensitive personal information with that direct lender. This can reduce the risk of having personal information exposed in the future.
• Loan processing time may be reduced: Brokers need to send your information to different lenders and wait for a response. In contrast, direct lenders typically process your loan application as soon as all required information is submitted. With title loans serviced by LoanMart, the application process can take as little as 5 minutes!³
• Better communication: Brokers eventually hand off a borrower to a lender. Before that handoff, there is a chance that information is miscommunicated or gets lost when the borrower relays information received from the lender. When borrowers directly apply with a lender, the communication is more direct and can thus be better.

How to Find the Best Direct Lender Near You

When you are looking for the best direct lender near you, the first question you may want to ask yourself is “what kind of loan am I looking for?” There are many different types of funding available, so you want to make sure you pick the best kind of loan for you. This includes deciding between potential bad credit options such as title loans vs. payday loans, revolving lines of credit vs. installment loans, and secured vs. unsecured loan options.

Once you’ve decided on a loan type, you can research the best direct lender options by searching online, taking into account how the potential loan terms offered by the lenders match up to your needs. You can also check out recent customer reviews on Google, or other reputable platforms such as the Better Business Bureau or Trustpilot. Lastly, starting an application and judging the direct interactions and communications by yourself is a good way to get a feel for potential direct lender.

Working with Title Loans Serviced by LoanMart

If you are looking for financial assistance but are worried that you won’t get approved because of your credit score, a car title loan may be the answer for you.

LoanMart is a licensed direct car title loan lender in some states, and services loans for other direct lenders in several other states.¹. There are many benefits that can come from working with a title loan serviced by LoanMart:

• Funded as soon as the next business day^{1 3}: Auto title loans serviced by LoanMart are known for their quickness and their efficiency. In many cases, people who are approved for car title loans receive their money as soon as the very next business day!
• Custom payment plan: Upon approval for your car title loan, your title loan agent will create a payment plan just for you, based on your unique financial situation and loan approval¹. With title loans serviced by LoanMart, your car title loan payments can be manageable and stress free.¹
• Qualified Staff: All car title loan agents on staff are experienced, trained, qualified, and knowledgeable about the car title loan industry. If you have a question, never hesitate to give your LoanMart car title loan agent a call and they would be happy to assist you.

Applying Online

You can apply online, wherever you are. Using your phone, tablet, or computer, car title loans serviced by LoanMart have a streamlined and easy process that may be able to get you the money you need in as little as one business day^{1 3}! All you have to do is:

1. Fill out our online inquiry: Our online application can take you less than 5 minutes to fill out.³ Once you’ve submitted your form, a representative will contact you shortly.
2. Send in your documents: Did you know you can text or email us your documents? LoanMart has created an easy way for you to submit documents. You just have to take pictures of your car and documents, then text them to 77513 or email them to lmdocs@loanmart.com.
3. Collect your funds¹: Whether you obtain a direct lender loan from LoanMart, or a loan that LoanMart services on behalf of a direct lender, you can obtain your loan funds quickly and in several convenient ways!