Few people go through life having never faced a crisis for which they need cash – right away. If you’re now in this situation, and a bank loan is out, you just may qualify for what’s called a vehicle title loan. All you basically need is a vehicle in your name and regular income. And you don’t have to run all over town looking for one, either.
In fact, here’s how to get totally online title loans.
What are Title Loans?
Usually due in 30 days or so, these short-term loans require you to have a vehicle registered in your name and title with no liens on it.
In exchange for a loan, you must temporarily relinquish your vehicle’s title until you’ve repaid the loan. However, you’ll still be able to keep and drive your vehicle during the repayment period. This is a major benefit over pawn title loans, which require you to leave your vehicle with the shop.
It is important to stipulate, though, that your vehicle could be seized and sold if you don’t make payments as agreed. So, be very sure you can make your payments, plus interest, before taking a loan out.
Also, depending on the lender, “vehicle” can mean, in addition to a car or truck, an RV, boat, or motorcycle. Some companies will even consider salvage vehicles.
How Much You Can Borrow
The amount of your offer will vary among lenders, as well as the state in which the lender is located. Mainly, though, the amount you can borrow will turn on two things: your income – the higher the better — and the worth of your vehicle.
Your vehicle’s value will be determined by its make, model, age, mileage, and overall condition. Factors such as modifications, or even the vehicle’s style or trim level, may also be factored in.
You can usually expect to get between 25% and 50% of your vehicle’s value. Most title loans average around $1,000 but can vary between $100 and $10,000 or more.
Note that with these completely online title loans, the amount you’re offered will not be based on your credit history. Some title lenders will look at your credit, but they won’t focus on it. That’s because, unlike most bank loans, these loans are secured, which significantly diminishes risk.
What Else is Required?
You must be at least 18 years old and, in addition to a car and title, have a government-issued photo ID. Some lenders will also want to see proof of vehicle insurance or personal or professional references.
You will also have to submit proof of income in the form of bank statements or pay stubs. That’s if you have a job. If you do not, but have alternate forms of income, from say, Social Security, worker’s compensation, a pension, rental property, or self-employment — and can document it that works as well.
In addition, you must supply recent photos of your vehicle in natural light from all four angles, plus shots of the odometer and vehicle identification number. This is another way in which title loan applications are completely online: there’s no need to take the vehicle in for appraisal.
How Soon Can I Get a Loan?
After gathering all the required information and applying online, you’ll get a decision that day. Once approved, your funds will likely be in hand by the very next day. Can’t get much quicker than that.
You’ll probably have options in terms of how you want to receive your funds: wire transfer, overnight check, direct deposit, and sometimes in-person pickup. If you wish for your money to be put in your bank account, first make certain it’s set up for ACH transfers.
That’s how to get totally online title loans, including the possibility of direct deposit. As long as you can make payments, title loans are a good way to get out of a crisis fast.
