A car title loan, as said on investopedia.com, is a short-term loan that secures the ownership of your vehicle. The average size of such a loan ranges from 100 to 50,000 dollars with a requirement to repay within the period specified in the loan agreement. The cost of a title loan includes the payment of interest for using it and a commission. The average interest rate on such a loan does not exceed 300 percent per annum. Timely repayment of such a loan guarantees the borrower the return of the vehicle at the end of the loan agreement.
What is the lending mechanism for obtaining an online car title loan?
The lending mechanism includes the following steps:
- At the first stage, a potential borrower determines for himself the loan amount he needs and checks whether online title loans without visiting the store are allowed in his state. Today, such loans are allowed in more than 20 states, which will allow you to find the right company to receive it. It should be remembered that the terms and amounts under these loan agreements vary from state to state.
- In the second step, the client finds an online title car loan company and fills out an online application. No trip to the office is required. The whole process is completely online procedure. In this case, you can be granted either a loan with a one-time payment, or a loan with the right to install payments. A lump sum loan is very similar to a payday loan and requires a lump sum payment within 30 days. The average annual rate on it is no more than 300 percent per annum. Installment loans have an average interest rate of no more than 259 percent and offer more flexible payments within 90-180 days.
- At the third stage, the personal information of the client is carried out. After agreeing on the terms of the loan agreement, it is signed by both parties. In this case, you transfer your car as a pledge, but continue to drive it.
- After signing the loan agreement, on the same day you receive a direct loan to the bank account specified in the online application.
- At the final stage, you must return the loan received.
It should be remembered that during the entire period of validity of the loan agreement, you continue to use your vehicle.
If you work to learn more on how title loans work, you can visit forbes.com.
What are the online requirements for title car loans without a physical inspection of the car?
To obtain such a loan, you need to provide:
– the name of the car that will be used as collateral for obtaining such a loan;
– confirmation of the level of their income and employment. Although there are credit companies that are ready to provide you with a title car loan without confirming your income level. Your car will act as collateral for such a loan;
– confirmation of your identity by providing an identity card;
– confirmation of the US residency;
– providing information about a bank account for crediting funds to it. Some lenders do not require such information about potential borrowers.
What You Will Need to Get an Online Title Car Loan Without a Physical Inspection
There are some requirements that will make it easier for you to get these online title loans without verification at loans360.org :
– a stable Internet connection to transfer the necessary images;
– a package of documents prepared for download, namely an identity document, registration, income level (if required), ownership of a car without a deposit in your name and photographs of the vehicle.
When the entire package of documents is prepared, you can apply for a loan immediately and completely online.
Benefits of getting an online title car loan without physically examining it
The main advantages of this type of lending are:
– fast and online application process, which takes 5-10 minutes and saves time on going to the office of a credit company;
– instant approval of your online loan application, which takes place within a few minutes;
– favorable interest rates on loans in comparison with other types of short-term loans;
– for obtaining an online title car loan, the credit rating of the borrower does not matter. Having a bad credit history does not mean that you cannot get such a loan;
– the borrower has the possibility of flexible repayment of loan payments;
– there is no need to provide a car for a physical inspection (uploaded photos are enough) and there is no credit check;
– financing under the loan agreement takes place within one day from the date of submission of the online application.
Is it possible to get online title car loan without credit check?
Vehicle secured loans are a great option if a potential borrower has a bad credit history and wants to avoid a credit check. Such loans are secured by the borrower’s vehicle, which makes them less risky for lenders, and they can be extended to any borrower, even those with a bad credit history. You are guaranteed to receive a loan if the car provided as collateral really belongs to you and is not encumbered with another collateral. Of course, the lender will perform a soft credit check, but they do it solely to make sure that taking such a loan will not affect your credit history.
How to get an online title car loan without physically examining it
The main thing to remember when you apply online for a title car loan without a physical inspection is that this concept implies no need to visit the office of the loan company, but not no inspection of the vehicle at all. In any case, the loan company will have to evaluate the vehicle in order to decide if you are eligible for such a loan and how much you can get. Therefore, the lenders will inspect your car either through the photos you uploaded or by using the results of the prospective borrower’s self-inspection of their car through a checklist.
If you choose online photo verification, the process becomes very fast and convenient. You only take pictures of your car and send the pictures to the loan company.
If you are using an online checklist (or title loan calculator) to check your vehicle’s eligibility and how much you can expect, you will need to enter the make, model, type and mileage of your vehicle.
With an online title car loan without physical inspection, you get cash instantly, saving you time on visits to the office of the credit company, phone calls and direct inspection. Therefore, this loan option is very convenient, suitable even for the unemployed, the service is available 24/7, all procedures are carried out completely online, interest rates are competitive, there is no credit check, and you receive the funds on the same day via direct bank deposit, check or cash.
Most borrowers prefer to get a loan through direct bank deposit, as it allows you to receive funds instantly. If you find yourself in an emergency and need a quick loan against your vehicle, you can immediately apply online for this direct deposit loan and get cash within 24 hours via wire transfer. Direct deposit involves receiving a loan directly to your own bank account through an electronic payment. To do this, the lender only needs your bank account details. Once the loan is approved, the lending company sends it to the bank for lending via direct deposit. Direct deposit usually takes 1-3 business days.