Choosing a Lender for Bad Credit Vehicle Title Loan in Ontario
Much like with just about anything, not all vehicle title loan companies are created equal. Each company has its own policies and its own way of doing things. You have to be careful not to assume that all bad credit vehicle title loan companies operate in the same way. They do not.
So how do you choose the right bad credit car loan company? Here are a few tips to help you out.
Reporting to Credit Bureaus
One of the most important aspects to consider is whether or not the lender reports to the major credit bureaus. Successfully paying off a vehicle title loan can help improve your credit rating. Credit agencies want to see that you are able to borrow money and pay it back on time. However, you’ll only receive this benefit if the lender reports your activity to the major credit bureaus. If they don’t, the credit bureaus won’t find out about the payments that you make and you won’t be able to improve your credit rating by getting a car title loan. Not all lenders report to all of the major credit bureaus, do so don’t assume that this is the case. Always ask.
Interest Rates, Charges, Fees & Terms
You will also want to pay attention to the interest rate that you are being charged. Obviously, a lower interest rate is generally preferable. However, you will also need to focus on the other terms of the loan. Again, don’t assume that all car title loan companies offer the same terms. Read the interest rate documents and the terms closely. Pay attention to any upfront fees and other charges that may be listed in the documents as well.
Is there any Payment Flexibility or Additional Payment Options?
What happens if you are unable to make a payment? What happens if you have some extra money and want to make a larger payment or an early payment? Different companies have different policies regarding these situations. It’s important that you find out this information before you accept the loan.
The Reputation of the Company
It’s also important to consider the reputation of the lender. How long has the company been in business? How many loans do they offer? Are they a trustworthy company to deal with? All of these considerations are important when choosing a bad credit vehicle title loan company. You’ll want to deal with a company that is stable, straightforward and a company that you can trust.