Loan Mart Review

Loan Mart ReviewLoan Mart specializes in auto title loans, which can sometimes be an alternative to payday loans that leaves more money in your pocket and gives you more time to pay back the loan. Here we’ll review the process and see if it makes sense compared to taking out a payday loan.

Payday lenders are notorious at overcharging borrowers for the money they need, and only giving them two weeks to pay back the loan in full. This often leads to the payday loan trap where a borrower needs to take out the money again in order to make ends meet, extending the transaction indefinitely as they never seem to get ahead.

Installment loans can be hard to get without any collateral. Lenders want to know that they’ll get their money back, and if you have bad credit it can be hard to get them to let you pay it off in installments since you have a bad history of making timely payments. You can find lenders that will give you an installment loan with bad credit, but it often comes with super high interest rates and you end up paying back far more than you originally borrowed.

An auto title loan is often a good middle ground since you are getting installment payments and a decent rate, not as good as you’d get from a bank but you can often get these types of loans regardless of your credit score because you are putting your car up as collateral. This may sound a little risky, especially if you’re having financial trouble and you need your car to get to work. Fall behind in payments and you could end up losing your car, which only makes your situation worse.

You are basically using the money that you’ve paid into your car as a way to borrow the money you need. So if all goes as planned you’re basically borrowing from yourself, but keep in mind that the auto title lender will still make a pretty good profit off of the deal.

Loan Mart Review – How It Works

The process is actually pretty simple, but if you haven’t done it before it may sound a little complicated. They try to make it easy for you by simplifying the amount of paperwork that needs to be done, and letting you fax this in instead of having to go to a local office.

What If You Don’t Have a Car?
If you don’t have a car you won’t be able to get an auto title loan. This is also the case if you are leasing your car. You need to have a car that you own and that meets the qualifications for the loan. You’re using the car as collateral, and if you fail to pay your loan your car can be repossessed by the lender to satisfy the loan. A payday loan may be all that you can qualify for if you don’t have a car that meets the requirements.

Your car doesn’t need to be paid off fully for you to use this service, but it should be almost paid off. This is because the lender needs some wiggle room where they can get their money if you fail to pay. So if you owe say $1000 on your car but it’s worth $6000 or more and you want a $2000 loan they should be able to help because they’ll be able to sell the car for more than what you owe and recover their initial expenditure through the sale.

What Else Do They Offer?
Loan Mart only deals with one kind of loan, which is nice because they are totally focused on one type of loan so they’re really good at it.

Our Recommendation
Loan Mart gets our recommendation for being a viable alternative to a payday loan if you have a car. They can save you money by offering better rates and lower interest, while at the same time allowing you to pay your loan off in installments rather than all at once in just two weeks. You can also get higher loan amounts that you otherwise would with just a payday loan.

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