If you’re in need of some quick cash, you might be considering taking out are car title loan. The process is quite easy, but it’s easy to get overwhelmed whenever one considers taking out a loan. Luckily, car title lenders work to make the process as easy and painless as possible. In fact, many of the biggest car title lenders let you go from application to approval all online. If that sounds like an attractive option, continue reading to learn to steps to getting easy title loans online.
Before we get to the steps, let’s break down exactly what a car title loan is. Basically, a car title loan is a lump-sum loan provided by a lender in return for the title of your car. The title of your car acts as collateral in the event that you default on your loan. In order to avoid defaulting on your loan, you will have to stay up to date on your loan payments. Car title loans are typically short-term loans – with payment periods often lasting just 30 days – and they have relatively high interest rates. The annual percentage rate or APR of car title loans can reach up to 300%.
If you do default on your car title loan, you will risk having your car repossessed by your lender.
Now that you know the basics of all car title loans, let’s go over how you can access easy title loans online.
1. Apply for a care title loan online or in person
The first step to qualifying to qualifying for a title loan online is, as you might have guess, applying for one. You can apply for most car title loans either online, or at the lender’s brick and mortar office.
Many of the biggest lenders are available for business 7 days a week and work on extended hours. They focus on running things as quickly and efficiently as possible to make sure that you get your money when you need it. In some cases, you can even fill out your application overnight so that you can be contacted by the lender first thing in the morning.
Typically, the application process is free and easy. Even if you are approved, there is no obligation on your end to do anything.
2. Receive a Pre-Approval Estimate
Even before you are officially approved for a loan, you will typically receive an approved loan amount based on the agreed terms and required documents you have submitted. The value of your loan will be based on the value of your car and the equity that you have in your car. While some car title lenders do accept cars even if you still owe money on it, you will have the best luck securing an easy title loan if you own your car outright.
When it comes to your credit score, do not hesitate if you have poor credit or even a past bankruptcy. Most car title lenders are willing to work with any potential borrowers as long as they have a lien-free car title and can prove that they will be able to pay back the loan within the given payment term.
3. Gather Your Documents for Funding
Now that you have your pre-approve estimate, you are going to need to gather the documents necessary to getting final approval. These are the things you can expect to have to produce:
- Your car title. If you can’t find it, many lenders will help you find it. On top of that, the title will need to be in your name. If the title is in someone else’s name, or has multiple names on it, you could even get help on that.
- A valid driver’s license or government issued ID.
- Proof of residence. Typically, a utility bill will work just fine.
- Proof of income. This is so that your lender can dictate whether or not you will be able to pay back your loan within the payment term. If you are not currently employed, you can prove your income by providing documents related to self-employment, retirement, disability, or social security. You can even use proof of under-the-table employment in some cases.
4. Take Pictures of your Car
Now you’re going to have to get into the nitty gritty of the actual value of your car. Take some shots of your car to send over. For some lenders, pictures may actually be enough for them to equate the value of your car. For others, they will want to carry out an in-person inspection.
Either way, they are simply looking to equate the value of your car. Now, one thing to keep in mind about car title loans is that your loan will not equal the value of your car. Typically it will equal anywhere between 25 percent and 50 percent of your car’s total value. That is because in the event of a default, your lender will need to sell your car to make up for the money they have lost in the loan. Because of that, they will not be looking for the best price, but the easiest sale. That means they will likely be selling well below market value, thus the 25 to 50 percent value of your loan.
5. Sign your car title loan and receive your money
This is obviously the easiest and most fun part of the car title loan process. Depending on the lender you are working with, you will either have to go to their brick and mortar office to retrieve your loan, or you will receive a direct transfer to your account.
Typically, same-day loans are possible when it comes to easy online title loans. That is one of the primary benefits of this type of loan – fast cash!
Now that you’ve got your cash in hand, make sure not to celebrate for too long. Depending on the term of payment, you may be expected to pay back the loan plus the interest you accrue over the life of your loan within the month. You should also find out whether or not your lender charges pre-payment fees.