Getting the Best Rate

Different kinds of "Car loan no credit" agreements are notorious for boosting up interest rates and leaving borrowers awash in an ocean of debt. Here are some prime tips for holding your own when you go to one of these companies to finance a vehicle.

Avoid shifty car title loan companies. Some of the worst offenders in usurious auto loan practices focus a lot on language around "approval," hoping that drivers with bad credit will be so grateful for the opportunity to borrow that they will agree to pay an arm and a leg for that privilege. Stay away from these shops and deal with more reasonable lenders.

Get detailed quotes. Enter as much information as possible and find online car insurance venues that will get you a detailed quote and not just a vague promise of approval. You'll want to keep these on hand as you investigate further.

Use all of your resources. This means that you use both physical locations as well as online sites that give out title loans. The more sites that you are willing to try, the better the rate you are likely to get. This enables price comparisons. Title loan prices can vary as well as the people you are taking the loan out from. It is always best to do research to make sure you are comfortable dealing with the people you plan on dealing with.

Pay special attention to interest rates. Of course you must pay the principal back. Title loans are short loans so the interest is slightly high, usually around 15% to 20%. The best tip here is that you must pay back your loan as soon as you can. The interest rates skyrocket as you need extensions, so the quicker you pay it off the better.

Never go for a "low monthly payment". Lots of the worst car title lenders will try to trick you by offering a low monthly payment without revealing the real terms of their loan. Auto pawn loans or cash title loans can include interest rates that eventually reach well over 100 percent, virtually guaranteeing that you'll be paying off your loan many times over by the time the company finally "lets you go." Don't fall for this trick: insist on a clear accounting of interest rates, not just for the initial loan, but for subsequent rollover loans.

Point out any asset collateral possibilities. In a Car Title Loan Orlando. you are already using your existing asset, a vehicle that you own, as collateral in the loan deal. However, research into car title loans has shown that these lenders are unlikely to be impressed. Instead, they may try to hit you with extremely high interest rates, saying your loan is still "unsecured." There are a number of ways you can deal with this, including getting involved in a home equity loan or HELOC (home equity line of credit.) Be forewarned, though, that any collateral you use to lower your interest rates is vulnerable to seizure in cases of non-repayment.

Use a cosigner. When your credit makes it hard to get access to the best auto title loan options out there, a cosigner can help. The cosigner is another consumer who adds their name to your debt. If you go this route, make sure your cosigner understands their responsibilities and keep everything clearly defined in the paperwork.

Follow up on the phone. When it comes to securing financial deals like loan agreements or insurance policies, there's only so much you can do online. Direct negotiation with agents is critically important, so pick up the phone and have a further conversation with a lender representative.

Talk alternatives. When cash title lenders complain that you don't have enough assets, talk to them about the alternatives available to you, even in a bad credit situation. When these companies know that you have a cosigner available, or additional assets to put up as collateral, they may start singing a different tune. If they hold fast to high interest rates, walk away.

Getting a car loan with bad credit involves some knowledge of the industry, and more than a little toughness. However, by shopping around and using the resources at your disposal, you may be able to avoid getting taken advantage of with high interest loans.