If you’re thinking about getting a title loan, you may be wondering if there is a difference between going through a broker or a direct lender. Both brokers and direct lenders may be able to help you get a car title loan. However, their processes are a bit different. Brokers help you by reaching out to a number of other lenders to solicit loan offers for the borrower. In contrast, direct lenders offer only their own loan products. However, they may be able to do things like work with borrowers to craft a loan agreement that more-closely fits their unique financial circumstances.
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. Generally, these lenders have a variety of specialties. For example, some may specialize in lending on older cars, or high-value loans, or even motorcycles. Lenders that are interested will send the broker a loan offer. These will be presented to the borrower, who can select whichever loan they prefer, or walk away. Assuming the borrower elects to sign a loan agreement with one of the lenders, the broker steps out of the picture. From that point forward, the borrower will interact with the lender, just like a regular title loan.
On the surface, this may seem like a better idea than using a direct lender. After all, with one application, you can get loan offers from a variety of different lenders. This can save you the trouble of contacting multiple lenders for loan quotes. Also, the broker will know which lenders will be most interested in giving you a loan, as well as which lender is most likely to give you the best deal on your loan. Despite having a number of different lenders competing for your business, this may not give you the best deal on your title loan when compared to what you could get from a direct lender.
What Are the Benefits Of Getting A Title Loan With A Direct Lender?
There are a number of benefits to getting a title loan from a direct lender such as LoanMart instead of a broker:
- Flexibility – While a broker may contact a number of different lenders, they are doing so based on guidelines provided by the lenders. As such, they may be less-able to make exceptions for borrowers with extraordinary circumstances. In contrast, the person you speak with when you approach a direct lender will likely have some say in whether or not your loan application is accepted. As a consequence, they may be able to work with you to give you a title loan better-tailored to your circumstances
- Lower Fees – All title loans come with fees. The more people that are involved in the title loan process, the more fees there will be. This is because each person involved needs to make money. As such, the broker’s fee may be passed on to the borrower. So working with a direct lender can lower the overall cost of a loan.
- Usually not paid on commission – Direct lenders handle the loan from start to finish. As such, they typically aren’t paid on commission; they make money directly from giving you the loan. Brokers usually are paid on commission. Some loans may give brokers a better commission. Because of this, they may be inclined to steer borrowers towards products that offer a bigger payout, even if it isn’t the best product for that particular borrower.
- Borrower personal information is less exposed – Brokers find borrowers a better deal by contacting as many different lenders as possible. As such, it behooves them to spread your contact information around. Some brokers only work with lenders who protect borrower information, but others do not. These lenders may do things like sell borrower information to advertisers, or even contact them directly regarding title loans in the future. In contrast, direct lenders may not want other companies competing with them for the borrower’s business. As such, they are incentivized to protect borrower information fiercely.
- Loan processing time may be reduced – Brokers need to send your information to different lenders and wait for a response. In contrast, the representative of a direct lender will have at least some influence on your approval. Additionally, they can contact decision-makers directly, also potentially reducing wait times. There is no need to wait for information to be moved between companies and verified.
- The same company takes the borrower through the entire loan process – Brokers eventually hand off a borrower to a lender. This may mean they are less-familiar with the particulars of each lenders’ loan process and/or product and cannot accurately answer a borrower’s questions. If it turns out that the broker was mistaken about a loan detail, the borrower may need to begin their search for a lender all over again. In contrast, a direct lender’s agent will intimately be familiar with their loan products. They will be able to answer any questions the borrower has, not only at the onset of the application process, but during the whole loan cycle.
Secured Auto Title Loan Lenders
It should also explain their safeguards that auto title loan lenders have in place to protect that personal information, as well as circumstances under which they may share that information with other companies.
Give Reasons Why They Collect Personal Information
When they collect a prospective borrower’s personal information, secured auto title lenders should be transparent in what they do with that information. This means being honest in their intentions, even if it means explaining every part of what they do with the info.
The range of details could vary, but secured auto title loan lenders should be upfront about the following details on the use of personal information:
- Confirming facts about an individual
- Deliver financial products and services based on the personal information
- Help assess requests for financial products and services based on the information
If secured auto title lenders cannot fess up to these types of details, then one should reconsider getting an auto title loan from them.
Transparent on The Sharing of Personal Information
Personal information comes with plenty of trust between a lender and a borrower. Secured auto title loan lenders should be honest about the ways they could share that information, such as:
- Sharing personal information with financial service providers, such as banks, mortgage bankers, credit card issuers and insurance companies.
- Sharing personal info to non-affiliated, non-financial companies like statement processors, repossession companies, collection agencies, or their attorneys.
- With any affiliate companies that use the shared personal information for everyday business purposes.
- Sharing personal information with non-affiliates for joint marketing, whom they may have a formal agreement to market financial products or services to potential borrowers.
- Sharing personal information (by legal obligation) about a borrower’s loan to credit reporting agencies.
Give You an Understanding on Your Right to Limit Sharing (Opt-Out Right)
Explaining an individual’s right to limit auto title loan lenders’ sharing of their personal information, except as permitted by law is an essential quality that should be followed by trustful title loan lenders.
Consumers should be sure the lender they choose to work with is clear on the interest rate to be charged. Some will try to quote interest rates that don’t necessarily apply to the specific terms of their individual loan to draw a customer in. Also, people should be sure the lender is upfront and honest about all fees that may apply. Some will try to throw in hidden fees or unnecessary charges.
We believe that borrowers should never be penalized for being financially responsible and striving to make early payments or more than the minimum payment – which is why there are no prepayment fees on any loan offered by LoanMart.
While some lenders find it acceptable to try and nickel and dime their customers and trip people up with hidden costs, LoanMart believes in being open and encouraging of discussion and questions. We walk our customers through the entire loan process, and ask everyone to speak up with questions or concerns so we can clarify anything that doesn’t make sense.
Why Are People Refused By Other Lenders?
They couldn’t show proof of an ability to repay: Lenders don’t want to put borrowers in a situation where they can’t actually repay the loans they’ve taken. Unless someone can show proof of enough income to demonstrate that they can pay back the loan in full and on time, they will probably be rejected for a loan by that lender.
They didn’t have a credit history: Lenders like to see a credit history because they want to know if an applicant has experience in paying back money that they borrowed in the past. If a potential borrower doesn’t have any previous credit history to their name, the lender will probably think that making a loan to that person is too risky for them.
They have a poor credit history: Similar to the reason above, if a lender sees evidence that a person has taken out loans before but not made regular repayments, defaulted on the loan or filed for bankruptcy, that will raise a big red flag for them. Fairly or not, they will assume that the same thing will happen this time and decide that it’s safer not to lend to them.
They asked for too much: Lenders may refuse to approve a loan if the amount being requested is more than they are comfortable letting the applicant borrow. This is because, again, they want to see that people are likely to repay what they have borrowed.
How to Find the Best Lender Near You
When you are looking for the best lender near your home, the first question you 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.
What are the various types of loan available? Well, first of all there are unsecured and secured loans. An unsecured loan means that there is no property used as collateral to secure the loan. Some people prefer unsecured loans because they are sometimes easier to get approved for than secured loans. However, one of the down sides to unsecured loans is that the interest rates can be higher, and the payback terms are usually much shorter than a secured loan may be able to offer.
Benefits of Working with a Direct Lender for a Car Title Loan
If you are looking for a form of financial assistance but are worried that you won’t get approved because of something like a credit score, a car title loan may be the answer for you.
LoanMart is a direct car title loan lender who may be able to connect you with the essential funding you need in order to get through a tough financial situation1. There are many benefits that can come from working with LoanMart for your direct car title loan, here are some of them:
- Funded as soon as the next business day3 – LoanMart car title loans are known for their quickness and their efficiency. In many cases, people who are approved for LoanMart car title loans receive their money as soon as the very next business day3!
- Custom payment plan – Upon approval for your LoanMart car title loan, your title loan agent will create a payment plan just for you, based on your unique financial situation. Using the famous LoanMart convenient terms and manageable rates, your LoanMart car title loan plan can be manageable and stress free to complete.
- Qualified Staff – All of the LoanMart 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.
You can apply online, wherever you are. Using your phone, tablet, or computer, we have created a streamlined and online filing process that may be able to get you the money you need in as little as one business day3! All you have to do is:
- Fill out our online inquiry. Our online filing form can take you less than 5 minutes to fill out. Once you’ve submitted your form, a representative will contact you shortly.
- 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 1-818-521-2470 or email them to firstname.lastname@example.org.
- Collect your funds1. We also have many ways you can collect your funds, and all you have to do is choose which is easier for you!