Online Title Loans

There are times when money is in short supply and a quick loan is the best solution to get some cash flowing again. One of the newest types of loans that consumers can get quickly and easily is an online title loan. There are few conditions placed on online title loans and many times the entire application process can be completed within the very same day.

Requirements for Online Title Loans
The only real requirement for obtaining online title loans is the fact that the vehicle must be owned with absolutely no liens placed against it. Other than that, there are certain states that don’t allow title loans so the lender, even online lenders, would need to be based in states where title loans are allowed by law. In fact, many online title loans don’t even do a credit check as the equity in the vehicle is security for the loan. Some online lenders will do a credit check and base their fees (interest rates and finance charges) on the consumer’s credit rating, but bad credit will not disqualify someone for a title loan. Most often the vehicle will need to have collision and comprehensive insurance coverage to protect the lender’s interest in the vehicle.

User Friendly Online Loan Application
Usually there are simple forms which can be completed in order to have an answer within moments of submitting an application. Basic information will be needed such as the vehicle’s VIN number as well as the owner’s information including proof of insurance. Before sitting down at the computer have all documents in hand so that the application process can be completed quickly. Many sites will time out if the user walks away from the screen for a few minutes to search for necessary documents. Once the application is submitted each lender has a different procedure to follow so the instructions on the screen will walk you through what to do next. Whether you need to fax any documents or have anything notarized, all will be explained once your application is approved.

Determining the Amount of Title Loans
The amount you can borrow on title loans is based on the market value of your vehicle. Usually a lender will look at the Kelley Blue Book valuation in order to determine what your vehicle is worth. Of course you will not be able to borrow the entire amount because each lender will base a loan on a percentage of the vehicle’s current value. If you were applying for a title loan at a brick and mortar establishment, the lender would take pictures of your vehicle. When applying online you may be asked to provide recent photos of your automobile so it might be wise to have some on hand. Although this isn’t customary, it is a very real possibility to be prepared for.

Repaying Online Title Loans
One of the best aspects of repaying online title loans is the fact that there are usually no prepayment penalties. What this means is that if the consumer is able to pay the loan back earlier than expected there will not be any fees attached to penalize the consumer. Sometimes an online title loan can be rolled over several times before being paid off in full, but be aware of the fact that some local ordinances only allow so many rollovers. Most often the interest is tacked on at the end of the term when the loan is repaid, but in the event that the loan needs to be carried over another time period, some lenders require the interest for that term to be paid as a prerequisite to a rollover. Because of the ease at which online title loans can be applied for, this is one of the quickest ways to borrow much needed cash without lengthy credit applications.

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