In Utah — like the rest of America — title loans have a reputation for being predatory. The incredibly high interest, the hidden fees, and the heartless repossession are only some types of mud anti-title lenders like to throw.
While it’s undeniable that there are some loan sharks in the industry, the number of honest providers of car title loan in Taylorsville and the vicinity is still higher. As a matter of fact, it’s rather easy to tell the good apples from the bad ones if you know the signs to look for.
How do you know whether a title lender is honest? Here are some hints:
Process is Straightforward
All trustworthy title lenders would move mountains just to make the loan process easy to understand. They would spend time to explain financial terms you may not be completely familiar with, explain your options, and bring up all fees applicable to the loan. Plus, every discussed point should be in writing to make sure everything is legally binding.
Of course, you have to do your due diligence to ensure you learn everything you need to know before you sign on the dotted line. But what matters is to see that the title lender is willing to assist you with your concerns.
Interest is Adjustable
It’s hard to doubt lenders willing to reduce the interest of the loan. After all, detractors always argue that car title lenders are in business to milk borrowers dry of their money. Many lenders are actually happy to match, or even give a much lower, interest rate offered by competitors.
In addition, some lenders only charge interest based on the number days you have the loan. They pro-rate the interest to be fair to all borrowers.
Rewards are Available
You can tell which lenders care for borrowers based on the reward programs they offer. Honest title loan providers usually give incentives to punctual payers. In the form of vanishing interest, title lenders hope to motivate borrowers more to pay on time and save money in the process.
To say that all car title loan programs are exploitative is naive. If you shop around and do enough research, you can quickly tell which lenders can really be trusted.