How Do Online Title Loans Really Work?

Online title loans are an often misunderstood way of getting fast cash. Many people assume that since they’re officially called “online” everything happens online. Unfortunately, this isn’t the case, but that doesn’t make these loans a bad thing. In this post I’ll show you exactly how they work so that you understand what it is that you’re really getting in to.

What the misconception here is that they work like online payday loans, online from front to back. Title loans simply can’t work like this because your car has to be inspected by the lender before you can get paid. That’s just how secured loans work. If you were to get a loan against your house, your house would have to be inspected and appraised as well. Lenders simply don’t work on trust, and if they did they would go out of business pretty quickly!

So How Do Online Title Loans Work?

The online part of this loan is the application. The real advantage here is that you’re already going to know if you’ve been approved before you ever have to leave your house.

You’re going to know quickly whether you’ve been approved or not, and once you’ve been approved the process of getting paid begins. This will happen one of two ways. You will either be required to drive down to the loan office and have your car checked out, or, even better, the lender sends a representative out to you to complete everything. If you can score the second option, do it, it’s much easier.

So no, you can’t complete everything online. But what you can do is make sure that you are qualified before you even apply to make things even faster.

What Does It Take To Qualify For An Online Title Loan?

You’re going to have to have a car with a clear title. That means that it’s been completely paid off and doesn’t have any liens against it. I know that in some cases it takes some time for the lien holder to send you the physical title, and if that’s your case be sure to let your lender know up front. Some require that you provide the title, and others can simply look it up to verify.

The lender will probably check your credit, but most don’t really care what your score is. Instead, they’re checking to make sure that you don’t have any outstanding loans that will affect your ability to pay them back. Basically, as long as you don’t have any current loans outside of the normal things like mortgages you don’t have much to worry about.

They will probably also want some paperwork that verifies things like your address and income, so be ready with those kind of things.

How Long Will You Get To Pay It Back?

Again, this is totally up to the lender, but most are going to give you at least several months. It really depends on the size of loan that you take out. In many states there are laws in place that set a minimum amount that you can receive from the lender in order to protect you from getting your car repossessed over a very small loan. In California, you can expect around a $1500 loan, but this is different for all states. Some lenders are going to give you up to a couple of years to get it all paid back, but choose the shortest terms you can afford to keep the overall interest payment as low as possible.

I hate to be a heart breaker and tell you that title loans aren’t completely online, but it’s better that you know now and not be disappointed later!

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My name is Lydia and I'm and expert at getting fast cash. I've been through it all, and now I want to share my experience with you

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