Potential Pitfalls with Unscrupulous Lenders

 
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Potential Pitfalls with Unscrupulous Lenders

For many people, having the option of obtaining money quickly from non-traditional lenders allows them to get the money they need when big banks turn them away. At LoanMart, we work to help a variety of people by offering a fast, convenient service while working to promote financial responsibility.

We believe in being clear about what we offer, and encouraging our customers to be as financially responsible as we strive to be as a company. That’s why we won’t lend people more than they can reasonably afford to repay (and why part of our requirements for securing a loan include evaluating gross monthly income). We also won’t provide car title loans for more than what a car put up for collateral is actually worth.

And while we’re very proud of the level of customer service we offer – which includes being there to help our customers through every stage of the loan process and being willing to answer all the questions we can – not all lenders operate in this way.

It’s smart to shop around for a car title loan online so potential borrowers can make sure they’re getting a loan product that best serves them, but be aware: there are some lenders that use unscrupulous tactics and questionable practices.

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.

The big issue consumers want to be on the lookout for is penalties for paying off a loan early. Some lenders will charge additional fees if a borrower attempts to repay a loan ahead of a predetermined schedule.

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.

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