A title loan allows you to use the equity in your vehicle that you own free and clear to get much-needed funds for an emergency. But are you aware that you can apply for one from your couch? It’s true. Keep reading for how to get a title loan from home.
What is a Title Loan?
It’s a short-term loan that uses your vehicle – truck, car, motorcycle, recreational vehicle, or boat – as security. This means that you can lose your vehicle, which serves as collateral, if you don’t repay it. So, just make sure you can do so before taking a loan out.
The other side of that is that borrowers usually don’t need to have their credit checked; lenders aren’t as worried about risk. Even lenders who do require a credit run don’t focus on scores.
Also note that while your vehicle will serve as collateral, you can keep it during the life of the loan, as long as payments are made. The title loan company will simply hang on to your title.
The loans are typically due in 30 days or less unless you have an installment agreement. There, you may have a year or more for loan repayment.
The amount you can borrow depends largely on the lender and your state of residence, in addition to your vehicle’s make, model, mileage, and overall condition. The loan range is usually between $100 and $10,000 or more, or between 25-50% of your vehicle’s value.
Applying for a Title Loan Online
You’ll have to gather documents including your government-issued photo identification, proof of residence, and a copy of your title. Some lenders require proof of vehicle insurance and a couple of personal or professional letters of recommendation.
You’ll also need to provide proof that the loan can be repaid – pay stubs, bank statements, etc. Many lenders also permit alternative income sources such as rental income, self-employment, worker’s comp, or disability insurance.
As we say, you can typically get an online title loan. You can apply from the comfort of your home or office. After the company receives your info, and all looks good, your application can be approved in minutes.
An account that will enable direct deposit will usually allow fund availability by the next business day, letting you avoid having to wait for days for the check to arrive in your mailbox – if it isn’t lost. After all, you don’t have that kind of time. Remember that even if you were eligible for a bank loan, that approval process is too drawn out.
If you don’t have a direct deposit account established, you should take care of that before you apply.
And Those Interest Rates?
Such rates depend on the company and where it’s based, but the average interest rate is 25 percent of the loan total. This amounts to 300 percent annually, but since most loan terms are for 30 days or less, you’ll likely never have to face the full 300 percent rate.
What’s So Great About Car Title Loans?
We’ve broached several of the advantages, but they generally include:
What are the Benefits of Car Title Loans?
We’ve touched on several advantages, but let’s list them here. Remember, some specifics will vary, depending on the lender and where it’s located:
- Quick cash. This is particularly the case if you have an account you can use for direct deposit.
- Bad credit won’t do you in. Chances are your lender won’t even check. But even if it does, your scores won’t make or break you.
- You can keep your ride. Most pawn shops want to hold your vehicle until the loan is repaid. Title loan companies do not require this.
Now that you know how to get a title loan online, you can rest assured that should you have an emergency and you own a vehicle with a clear title, your financial woes can be solved by a title loan, which can be applied for without leaving your home.
