Concerns about money can not only have devastating financial consequences but affect a person’s well-being also. Ask for a title loan instead of just sitting back and watching this happen.
What is an online title loan?
An online title loan is an easy loan that uses a borrower’s asset for collateral. There are two major reasons why this type of loan is so popular.
First, the borrower is not required to have a good credit score.
Second, it has a much faster loan approval process compared to other kinds of loans.
People can borrow amounts as low as $100. For borrowers wanting to avoid a long loan application process associated with applying in person, there are online title loans available as well. The terms and conditions should always be checked carefully.
How much money can I borrow on an online title loan?
A car title loan is one of the more common kinds of title loans. The borrower in this situation should own a vehicle. Loan companies can lend up a car’s 25% total value and the car title is retained as security.
Online loan companies offered a maximum amount of $1000 on car title loans, although some lenders might offer higher amounts. An online title loan can be repaid on an installment plan over a 2-year maximum term or in one easy payment. If the borrower does not meet the requirements of the loan agreement, the person’s car can be immediately repossessed by the car title loan company.
Or the borrower may be given the option of paying interest-only monthly installments, where the borrowed amount is rolled over until it is completely repaid.
Online Title Loans – A Break Down
Title loans mainly attract borrowers who have bad credit and individuals who need instant cash. These loans are mainly used for the following:
Whatever financial needs a borrower has online are the same ones that are met by other types of loans that financial institutions offer. The only real difference is an online title loan specifies what can be used for the collateral. Also, the same benefits are offered by online title loans as in-store requests. ‘Title loan’ is a term that is used because normally a certificate of ownership is required by lenders on the property that is used as collateral for the loan.
On the other hand, there are no restrictions on borrowers in using their property (car) during their loan application process. Only the title gets held by the lenders. The property stays with the borrower. Any property that is used for applying for a title loan needs to have legal documentation to back it up to prove ownership and, in a form, that government agencies recognize.
Title loan qualifications
Online Title Loans
The legal owner of the property being used as collateral
Proof of income in the form of pay stubs or bank records.
Original ID card
Fully insurance coverage on high loan amounts
Title loan benefits
If you need cash immediately, there are several loan options that you can consider. However, when you are the owner of a high-quality asset, you can obtain immediate funding easily by applying for a title loan. The following are some of the advantages to a title loan:
Quick access to money
Once your loan request has been approved, the money will be sent to your bank account within a couple of days. People will be eligible to receive a title loan if they have a steady income and own a high-value asset. If you meet this requirement, then the process will usually only take about 30 minutes. You just need to fill out the request form, provide photographs of your property, and then sign the paperwork. There are even some direct lenders who will approve funding within only 24 hours after the request has been made.
No credit checks.
There are many financial institutions that required borrowers to have good credit ratings in order to qualify for various kinds of loans. However, with title loans, it is not a requirement. Each person will be eligible for the loan if they have an asset that can be used as collateral and has a consistent source of income. A soft credit check might be conducted. You can often get money as soon as the very same day that you apply.
Your asset can still be used
When you apply for a title loan, your property title needs to be given to the lender for as long as you are repaying the loan. However, during this time you will still be able to use your asset. The asset is only used as collateral by the lender.
Less expensive than a cash advance
When it comes to interest rates, cash advances and payday loans are a lot more expensive when compared with title loans. That is since property is used for collateral. That means that a high-interest rate does not need to be charged since the asset provides security.
Quick repayment schedules
With a title loan, a borrower will now the total amount that needs to be paid back on the loan, and when the money needs to be repaid. If you fail to pay it back on time, you may end up having too many loans and must apply for payday relief.
Most borrowers repay their loans with their next paycheck. However, you can have repayments done over several installments on a large loan.