- Make sure you meet the eligibility criteria. This usually only means having a clean (lien-free) car title in your possession. You may also need to surrender a copy of your keys. Before even speaking with a loan officer, get recommendations. Go out into your community, find friends or family or colleagues who've dealt with an auto title loan officer and had a good experience. Get at least three positive recommendations about one particular lender before approaching the company. Finding a company is fairly easy. Most are located in suburban strip mall complexes and can be found online. Be sure to check the Better Business Bureau before dealing with the company.
- Most payday lenders (lenders who cash postdated checks for a fee) also make auto title loans. It's advisable to strictly deal with auto title loan dealers. The reason is that while both lenders have been scandalized, payday lenders are notorious for convincing borrowers to accept both payday loans and title loans--a practice that often leaves borrowers swirling in overwhelming debt.
- Exhaust all other options before accepting an auto title loan. While many local banks have strict credit requirements for personal loans, you may have more luck with a finance company. Even a credit card might be a better deal than a title loan. Compare the average rate of a credit card, 14.67 percent, to the normal title loan rate: 300 percent. When signing the paperwork, the borrower is often unaware of the serious credit burden he is undertaking.