Getting cash during an emergency is one of the hardest things to do living in Louisiana. The situation is even worse for residents that suffer from bad credit. As the U.S. economy picks up for most states, the Bayou State remains the 7th poorest state. Thankfully, there is one solution, albeit risky, that many
Louisianans are turning to: car title loans.
In Louisiana (whether you’re in New Orleans, Baton Rouge, or Lafayette – it makes no difference) there are plenty of ways to get a bad credit loan. However, auto equity loans are becoming one of the most popular options in the Pelican State.
But before you go running to your nearest lender, keep in mind that car title loans are one of the most expensive forms of credit. To makes things worse, there are a slew of shady title loan companies in Louisiana that are looking to get rich off your demise. So how do you know which company is legit?
Research Louisiana Title Loans Online
The internet is your best friend when it comes time to finding the best title loans in Louisiana. The internet allows you to search for reputable lenders and read the experience of other borrowers near you. You might even be able to research and compare loan repayment terms, interest rates, and most importantly, repossession laws.
As helpful as the internet may be, you must exercise your good judgment. Not all information is accurate or true. Be wary of lenders with glowing reviews, no contact information, or no history. Choose from established Louisiana title loan companies like Titlelo Title Loans, Cash Cow, or Advance America.
Dig into The Lender’s Loan Terms
The most important thing you can do after finding a loan company to do business with is to look closely at the kinds of loan repayment terms they have in place.
You’ll want to be sure that they offer some kind of flexibility so that you can cover all of your bases in case you miss a payment. You’ll also want to make sure that there aren’t any prepayment or total payment penalties. Lastly, you want to make sure that you are going to be able to meet the loan repayment plan as it is outlined so that you don’t forfeit the title of your vehicle.
Lookout for Hidden Fees & Charges
At the end of the day, everything comes down to the interest rate. Although auto title loans are known to have exorbitant rates, it shouldn’t be more than 25% – 30% a month. Be on the lookout for sky-high interest rates, hidden charge, and other “gotcha” weasel terms that might make their way into a loan agreement.
Of course, if you’re working with legitimate creditors you can trust, the risk factor for coming across this kind of nonsense goes away – though not completely. You’ll still want to review every detail of your agreement before you sign on the dotted line.
Sometimes no matter how prepared you are, mistakes will still happen. If you’re already doing business with a less than honest lender, familiarize yourself with Louisiana’s title loan laws. If you find that your rights have been violated or that your lender is operating under a loophole. If all fails, your best option may be to look for a lender willing to buyout your loan.