There are times in life when you urgently need cash to take care of one situation or another. A traditional bank loan is out, and now you’re flat out of options. But don’t despair: if you have a vehicle with a lien-free title, you’re likely eligible for a loan that could see you through your emergency situation. Check out these benefits of online title loans – and more.
What is a Title Loan?
These short-term loans use your vehicle as collateral. This means approval rates are high. Your task will be to repay the loan so that you won’t lose your car.
Also, you can keep driving your car over the life of the loan. The lender will simply hang onto to your title, which you’ll retrieve once the loan is repaid.
How Do People Use Such Loans?
There’s no limit to what a title loan can be used for. For example, people use such funds to cover unexpected medical bills, repair another vehicle, renew car tags, purchase school supplies, fix a large appliance, pay a big utility bill, or to cover tuition.
What is Required for Such Loans?
You will need the title to your car or truck. Some companies will also consider your boat, motorcycle, or RV. If you can’t find your title, let the lending company know. They can help you get another one.
Beyond that, you’ll need to provide pay stubs or bank statements or the like to prove you have the wherewithal to pay the loan back.
You also must have a driver’s license or other government-issued photo ID, proof of insurance, and proof of residence. There may be other required documents, depending on the lender.
In addition, the lending company will also want to see recent photos of your vehicle from all angles.
What Size Loan Can I Get?
It depends on the lender, but loans usually are for between $100 and $10,000, although amounts can go higher.
In deciding how much to lend you, the title company will consider the make, model, age, mileage, and overall condition of your vehicle, and sometimes even its trim level.
What are the Benefits of Online Title Loans?
Specifics regarding such loans depend on the lender and often the state in which it’s located. With that said, here are some general benefits of car title loans online:
- Apply from home. Yes, you can apply for a loan from the comfort of your sofa, and you might even be approved while you’re still sitting there. All necessary documents may be submitted electronically.
- Fast cash. You can often have funds in hand within 24 hours of approval. Also, many lenders can deposit cash directly into your bank account.
- Minimal processing. There’s no lengthy protocol for these loans. If you have a vehicle, clean title, and ability to repay, that’s primarily all you need.
- You don’t need good credit. Lenders will have the title to your vehicle, and that’s enough for most. Your credit status isn’t even usually considered.
- You can keep driving. After you take out the loan, you are free to use your car as normal. Your lender won’t withhold your vehicle during the life of your loan.
- Flexible payment plans. Usually, repayment is due within 30 days or less. Many lenders, though, will permit you to pay in monthly installments for a year or more.
Now that you know the benefits of online title loans, you can decide whether applying for such a loan is the right move for you. If you do decide to go that route, just be sure you can pay the loan back. If you can, you’ll be all set.