Different situations will push you to borrow to address your financial needs. For example, when you are ill, it’s impossible to postpone treatment until you get money. If you have a regular paycheck, you can get a title loan to finance house renovations or vacations. Whatever your reason, this is one of the fastest ways to receive quick money.
Most lenders will give you a car title loan in less than 24 hours, making this option suited for an emergency. Shortly after submitting your application, you’ll receive an instant reply informing you about their decision. In rare cases, the company will ask for additional information, but you can still expect to receive the money within 24 hours after approval.
Unlike banks, you don’t need to follow stringent procedures to be approved for a title loan. You use your vehicle as collateral, so the provider may not scrutinize your credit history. If you’re looking for a quick loan, here is everything you need to know.
A title loan, known as a title pawn, is a secured short-term credit where you can use your vehicle as collateral. You agree with the lender to place a lien on it and temporarily surrender your car title in exchange for the money. The reason title pawns are convenient is extended repayment terms. This is ideal for borrowers who need more time to repay the debt.
While it’s considered a short-term credit, most car title loan lenders will allow you more time to pay it back. Compared to other options, you will be paying smaller monthly installments, which means getting the loan may not disrupt your life, and you can comfortably submit payments. To determine the amount of money you can receive, they use your car value and income. Depending on these parameters, you can get anywhere from $200 to $10,000.
There are differences between auto title loans and a payday or an installment loan. Payday loans are suitable for small debts and offer incredibly short terms. Unlike car title loans, payday loans online require the borrower to repay the debt on their next payday. This leaves you with about two weeks.
With auto title loans, you can negotiate a repayment plan with the provider. Installment loans are also a short-term option, but they allow you to repay in installments over an agreed period. Both are unsecured, so you might get higher interest rates.
There are different reasons you might want to apply for a title loan online. These are forms of credit that are quick and easy to get, and lenders can give you money up to your vehicle’s value. Besides, your credit score doesn’t matter, and the payments are flexible, allowing you peace of mind. So, you may consider an online title loan in case of:
It takes a few steps to complete your application and receive the money. Here is a step-by-step preview of how title loans work.
There are few things you should consider before you apply for title loans online. You must ask yourself if the loan is the right solution for your situation. Also, you should assess if you are able to pay it back. Lastly, compare alternatives and their benefits. If the answers to your questions are all positive, you can then accept the deal.
On the lender’s website, use the online loan request form to apply for the amount you need. For this process, you need to provide some basic details, including contact information, details about the vehicle, bank details, and your source of income. Once done, submit the form and wait for feedback.
The lender will quickly inspect the car. This process is necessary to help in valuation. It does not take long, so you can stand by as they complete it.
You’ll get feedback on your loan application. The lender will combine information from the vehicle inspection and the data you submitted online to decide. This decision includes the amount of money you’re eligible to receive, considering the vehicle’s condition and your source of income.
After reviewing everything and signing documents, you will get the money within 24 hours after approval. Most lenders offer instant feedback, and if you applied early in the day, the cash could be transferred to your bank account on the same day.
The last step in the process is repaying the loan as agreed. Follow the payment schedule, and once the debt is settled, you can collect your car title.
One of the things you must consider when applying for car title loans is the cost of this form of credit. When you get the loan, you are expected to pay a certain amount in interest. Typically, the interest is calculated as an annual percentage rate (APR), which works out to around 300%. Per month, it breaks down to 25% on average in interest charges. This means if you borrow $1000, you will owe $1250 at the end of the month.
This does not include other fees you would need to pay. While the short-term loan can be a suitable option, it can be expensive, especially if you’re taking a significant amount. That’s why apply only if there are no other solutions. However, the cost of this interest can be spread across several installments, making it easy to repay without default.
When calculating interest rates, companies consider different parameters, including your source of income and car’s condition. To calculate the interest for an instant online title loan, most organizations combine all these factors to pick a uniform rate. For the majority of applications, interest rates are fixed at 25% per month, which gives an APR of 300%. The rate could be lower if the risk level is insignificant.
If your source of income guarantees a stable paycheck and a sufficient amount to clear the loan, the lender will not hesitate to give you a favorable deal. However, you must be careful when borrowing as you don’t want to pile up debts. On a loan of $1000, borrowers pay up to $1200 in interest annually. If you can repay in a few installments, you will avoid much of the interest and lower the total amount charged.
The amount you can borrow through an instant online title loan depends on your car’s value. Usually, providers offer 25% to 50% of your car’s value, depending on its condition. The average amount people get ranges between $100 and $5,500, but it’s possible to agree on 10,000 or more, depending on the company. Because they accept different types of vehicles, the valuation amount varies, so different people qualify for different amounts.
Once they approve the loan, you are required to provide your car title. This does not mean you also forfeit your car as you can continue driving it, but some organizations install a GPS tracker or make a copy of your keys. These measures are necessary as they protect the company and ensure easy retrieval of the vehicle if you default. Loan terms primarily run for 15 to 30 days, but you can get up to a year if your deal requires multiple installments.
While applying for car title loans online, there is information you must provide to enable verification. It helps the company decide if you’re eligible for the loan. Before you submit your request, you need the following:
However, you can still get approved without a regular source of income. People without a regular paycheck can show alternative income, which allows them to qualify for emergency cash. There are several reasons that could make the provider deny you the money. For example, your car value may not be sufficient to stand as collateral. Typically, it takes about 15 minutes to get feedback on your request, so you will know if the car does not qualify as collateral.
Before you apply for a title loan, pay attention to these important factors:
This is a small secured loan that holds your car as collateral. Lenders offer money from $100 to $10,000 or more, depending on your vehicle’s value. To get the deal, you must have 100% ownership of the vehicle without liens.
It’s uncommon for providers to offer a 25% interest rate per month. For a 30-day $1000 loan, you would pay $250 in interest. This translates to a 300% APR, much higher than some forms of credit.
If you fail to honor the repayment agreement, the company reserves the right to repossess your car. Always borrow an amount you can repay comfortably.
Yes, it’s possible to apply for the loan online. Most companies offer websites where you can find the loan application form. Fill it out, then submit it for review. This process should take a few minutes. You’ll receive feedback and further instructions.
It’s easy to get approved for a title loan. You just need to log on to the lender’s website to submit your request. Also, you could go to the company’s physical location to process the application. FasterLoans offers an extensive network of direct lenders in all states, making it possible to get a loan near you.
It’s possible to obtain several online title loans with no credit check. However, this cannot be done on the same car. You can only have one active loan per vehicle, so you can get more loans on different cars. They must have clear titles to get approved.
Companies provide these restrictions to protect themselves and ensure you don’t take on too much debt that you cannot repay. If you default, the online loan agency can repossess the car registered under the loan. If you can do with one credit, avoid taking more, as this could leave you with losses if your vehicle gets repossessed.
Some direct lenders offer lenient requirements that allow you to get a second lien personal loan while still making payments. However, the company will review different things, and some will perform a credit review to verify that you can handle the extra financial obligations.
There are different ways to pay off your bad credit title loans. You can start by paying off the balance early if you can manage. You can contact the provider to negotiate the terms and get a favorable repayment agreement. This is necessary if you’re in a situation that does not make it possible to submit your installments. There’s no guarantee they will accept your bad credit loans request, but it does not hurt to ask.
Indeed, you can refinance your title loan. This is relatively easy and could help you get a favorable deal. If you have an active car loan with another lender, you can refinance to get affordable monthly payments, lower interest, and more. This is one of the solutions when you want to pay off your debt.
Applying for loans with FasterLoans is an easy process. You can do it from your PC or mobile devices at home. Use the website to fill out the request form and submit it. You will receive feedback shortly, stating whether the application was accepted. The lender will give you instructions on the next steps to follow.