Things to Know About Online Title Loans

If you’re suddenly in need of cash with nowhere to turn, don’t panic. You might have an option in title loans. After all, all you essentially need is a vehicle and a steady income. How do online title loans work, you ask? Keep reading for that and more.

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What are Vehicle Title Loans?

This is a short-term loan you’ll have to pay off in 30 days or less, although some lenders offer longer terms.

You’ll need a vehicle that’s in your name that you own outright. You will have to relinquish the vehicle’s title to your lender until the loan’s repaid. However, unlike with pawn title loans, you can keep your vehicle – car, truck, motorcycle, or RV – during the repayment process.

This is a secured loan, which means approval rates are relatively high. It also means that if you fail to make on-time payments, your vehicle could be seized and sold to cover losses. So, be certain about repayment before taking a loan out.

How Much Can I Borrow?

That will depend primarily on your vehicle and income, as well as the title loan company and the state in which it’s located.

As for your vehicle, the lender will focus on its make, model, age, mileage, and general condition. It will also factor in any modifications or alterations, as well as the trim level, where applicable, and style (sport, coupe, etc.).

The best title companies will offer a loan calculator onto which you can input the above info and get an idea of your likely offer. The company will want to inspect your car, but instead of having you take it in, it will permit you to simply submit clear, recent photos from all angles, and including shots of the odometer reading and vehicle identification number (VIN).

In all, title loans range between $100 and $10,000 or more, with $1,000 being about average.

The other major part of the equation is your income, which will help determine whether you can even get a loan, as well as for how much. If you’re employed, you must show paystubs or bank statements, etc. If you aren’t employed but have a steady income, that would be acceptable as well. Such sources may include self-employment, Social Security, Worker’s Compensation, settlement payments, rental property, child support, alimony, or a retirement account, for example.

Your loan won’t depend on your credit, although some title lenders will look at it. Title companies are much more focused on your vehicle and income.

Are There Other Loan Requirements?

You must be at least 18 and have a driver’s license or other form of government-issued photo identification, such as a passport. Title lenders are regulated by the state in which they’re located, so you’ll need to show proof of residence.

Some lenders require you to have professional or personal references in addition to insurance on your vehicle.

How Soon Can I Get Cash?

The process is quite speedy. You can apply completely online, which saves time from the start. Once you’ve submitted your application, including all required materials, you’ll likely get an answer that day, possibly within minutes.

Once you’re approved, your funds will be available the next day. Options for retrieving your funds might include direct deposit, ACH transfer, pickup at a local MoneyGram location, and a mailed check.

Online title loans are increasingly popular among those for whom a bank loan is out of the question, particularly during an inflationary economy. You only must be 100 percent sure you can pay the loan back.