Online Title Loans – No Inspection Title loans are collateralized short-term loans. The owner’s vehicle is used to secure the loan as collateral. When an emergency happens, you need online title loans fast. If you don’t have the time to get approved for a traditional loan, instant online title loans are a financial solution. If […]
Online Title Loans – No Inspection
Title loans are collateralized short-term loans. The owner’s vehicle is used to secure the loan as collateral. When an emergency happens, you need online title loans fast. If you don’t have the time to get approved for a traditional loan, instant online title loans are a financial solution. If you have bad credit, online title loans no credit check can save the day.
Title loan lenders consider the vehicle’s value before approving a loan. Most title lenders use NADA guidelines or the Kelley Blue Book to arrive at fair market value (FMV).
Some title lenders make title loans that don’t require the car based on FMV and the vehicle’s identification number (VIN). The Consumer Federation of America reports that the average title loan is about half of the vehicle’s current FMV. The Centers for Responsible Lending report the average title loan is about USD 1,200.
Title Loan Process
To get online title loans fast, present the clear title to the car or truck you own. Some title loans don’t require the car. After arranging the title loan, the lender may permit you to drive the vehicle. That’s important if you need a car or truck to get to work or perform job-related tasks.
Some lenders offer a convenient online application. An online application for title loans can expedite the process and get money in your account faster.
Title lenders don’t check your credit, but you’ll probably be asked for a paycheck stub, a set of keys, and personal identification such as a driver’s license.
If you accept the title lenders terms and conditions, you provide the lender with the vehicle title and a set of keys. The title lender holds these items until the loan is repaid.
Repayment of the Title Loan
If the lender offers title loans that don’t require the car, it still uses the owner’s vehicle to secure the loan. That’s why the title lender may agree to arrange title loans without seeing car.
Since repayment of the title loan is usually due in about one month, it’s important to think about the consequences of accepting a title loan. If you don’t repay the title loan, you can lose the vehicle.
Also, title lenders may charge higher interest rates than your bank or credit union. If you can’t repay the title loan when it becomes due, the Federal Trade Commission (FTC) recommends speaking with your lender. It may be possible to renew or extend the maturity date of the title loan. Otherwise, the title lender has the legal right to repossess the vehicle to cover the outstanding principal and interest due.
Compare Title Loans
Different title loan lenders offer a range of interest rates on title loans. It’s important to compare interest rates and fees to get the best value. Before making a title loan application, compare title lenders in your area.
According to Bankrate.com, the average borrower pays a 300 percent annual percentage rate (APR). Since title loans are designed as short-term funds to be used in an emergency, don’t request a title loan if you can’t repay the money as agreed.
For instance, if the title lender offers USD 600 on the vehicle collateral and the borrower must repay the loan at the end of 30 days, he or she is required to repay the original loan balance (USD 600 ) plus interest. Interest charges due may run USD 100 or more on the loan. You will need to return USD 700 or more to use USD 600 for a month under these terms.
Consider your ability to repay the title loan before accepting money from a title lender. Develop a weekly financial plan to ensure you have the money required to repay the loan.
Knowing that you have the means to repay a title loan is crucial in selecting the best title loan. If you accept a longer-term loan or 60 or 90 days, compare title lenders with the most affordable APR over this term before signing the loan document.
Not all title lenders allow you to retain the car or truck during the loan period. If you need to drive the vehicle during the loan term, ask the lender beforehand. Keeping the vehicle may be essential to earning the money needed to repay the title loan debt.
Title Loan Fees
Your title lender may charge a fee (or several fees) to write the title loan. Fees reduce the amount of cash available and/or require a higher repayment of funds to the lender. Read the fine print on each title lender’s contract if possible. Request two or more title loan quotes before choosing your lender.
Fees charged by typical title lender firms include:
- Interest rate: Your lender must tell you, the borrower, the APR that’s charged to the loan before you sign the loan agreement and accept the lender’s terms and conditions.
- Finance fee: You may be charged an upfront finance fee to borrow from the title lender. It may request a post-dated check for the finance fee, interest rate, and principal on the day you receive the loan funds. If you extend the loan period, the amount of the finance fee can increase over time.
- Late fee: The title lender may charge a late fee if your repayment of the loan (principal plus interest) aren’t on time. You may be charged a late fee if you don’t present required documents to the lender as agreed.
- Lien fee: You may be charged a fee to place the lender’s lien on your vehicle. The lien may be placed on your vehicle title (UCC Filings) within your residence state. The lien secures the title lender’s capital investment.
- Roadside assistance: Your lender may charge you to carry a specific roadside assistance service during the term of the title loan. If you already carry roadside assistance or your vehicle insurance policy includes it, discuss this with the lender.
Additional Title Loan Requirements
All title lenders require the borrower to repay the principal loan, plus interest and fees, and to surrender the vehicle title during the loan term. Some title lenders also require:
- An extra set of keys: If the lender allows you to retain the vehicle during the loan period, the lender may ask for a set of keys and/or a wireless key fob.
- GPS tracking monitor: The lender may demand a GPS monitor in the vehicle so it knows where the vehicle is at all times. The GPS box may also allow the title loan firm to prevent the owner from driving the vehicle if the required payments are past due. The GPS monitor is a sophisticated tracking device the helps the lender protect title loan collateral.
Borrower Qualifications
Getting approved for a title loan doesn’t require good credit. However, the borrower must meet standard qualifications to obtain a title loan, including:
- Steady job or income: Although not all title lenders require the borrower to have a job, you must show evidence of a reliable income stream to qualify for a title loan. If you can’t provide this evidence, the title lender is likely to believe you won’t repay the loan. In that case, you won’t be approved for the title loan.
- Checking account: Some title lenders require a checking account. You may be asked for a post-dated check on the day you receive the title loan funds. If you check doesn’t clear the bank on the day the funds are due, you will be charged additional fees.
- Address: You must present a valid address on a recent bank statement or utility bill to get approved by most title lenders.
- Credit rating: Some title lenders run a credit report. If you’ve defaulted on title loans or payday loans in the past, the lender probably won’t approve the title loan.
- Clear vehicle title: You must demonstrate that the vehicle you’re offering as loan collateral is in your name. You will be asked to sign a lien release to enable the lender to protect its capital.
