You may have been thinking recently about getting a car equity loan. These types of loans are very popular now because they are short term loans. Car equity loans are different than other types of loans such as long term loans. Having a good understanding of how to use and manage different types of loans will help to put you in the driver seat when it comes to taking control of your finances.
How to maximize long term loans such as mortgages and student loans is a completely different conversation for another blog post on another day. Today, we will focus on tips you will be able to use to help you navigate the many different car title loan companies out there and how to get the best rate on your loan and maximize your loan amount.
Find Out What Your Car Is Worth
Before you start calling around to title loan companies or filling out the online applications on their websites, do yourself a little bit of homework first. Go online to a website that can help tell you the street value of your vehicle as of today. You can try kbb.com which is a good site for information on your vehicle. Input your mileage and update any options you may have had added. You are also going to want to accurately report the condition of the vehicle to get a good estimate of your automobile’s worth as of today.
Once you acquire the amount that your vehicle is worth, keep in mind, the title loan company that you go to will probably not lend you the full value. You will likely be offered a portion of the vehicle’s full value as a loan. The most important part is that you have a good understanding of what the current value of you car or truck is and that you also understand that you will likely be offered a fraction of this amount.
Shop Online For a Reputable Company
After you discover the value of your vehicle, you are going to want to start researching companies. The best way to do this is go to Yelp or Google and do a search for “title loans Phoenix” or something similar based on the city you live in. Once you perform this search, you will see a list of title loan companies nearby.
This will be the best opportunity for you to go through the first several title loan companies’ Yelp reviews and Google reviews. What you are going to want to look for is a company that has a good amount of decent and honest reviews. Yes, you want to see that a company has a decent amount of 5-star Reviews, but remember that no company is perfect. So, check to see if the company did receive some unfavorable reviews and then how did the company respond? Did the company try to rectify the situation? Go ahead and read through the 5-star reviews and the unfavorable reviews as well and you will get a good sense of whether this company will be a good fit for you.