There Are Many Options for Repaying a Title Loan
If you need emergency cash, applying for a traditional bank loan isn’t always an option. Unsecured loans may not be available to you if you have a poor credit score.
But, you can still apply for a title loan online if you have a bad credit history! The application process can be quick and convenient if you meet the initial requirements and submit the correct documents. Keep reading to learn more about how title loans work.
Title loans are short-term loans that allow people to access money quickly using their vehicle as collateral. In exchange for funding, lenders place a lien on the car title and remove it after repayment. If you qualify for funding, the first title loan payment is due every month on a specific day after you receive the money. You can find that out by reading your title loan agreement!
It’s important to read your payment plan carefully during the application process for an auto title loan! Below is more information about how to pay back a title loan and what happens if you miss any payments.
How Can I Apply for a Title Loan Online?
Applying for a title loan online can be simple and only take a few minutes. The first step is ensuring you meet the initial requirements before filling out any pre-approval forms. For a car title loan, you must meet the following criteria:
- You must be at least 18 years old to apply
- The title of the vehicle must be in your name
- Possess a vehicle with a positive equity
- Prove that you have a steady income
You can only apply for a title loan online if you are an adult and have a vehicle title in your name. The car title is crucial for this option because it serves as collateral in case you miss any payments. If you need help replacing a lost title or transferring one to your name, applying for a new one can be easy– you can contact the DMV in your state for assistance.
You also need a vehicle with positive equity because lenders look at this number when determining loan amounts. Borrowers may receive anywhere from 25-50% of their car’s equity in title loan funding, but this amount can vary depending on several factors.
Lenders will check that a borrower has some form of steady income during the application process for a title loan to ensure they can repay the money. Many forms of income can be accepted outside of a traditional job, like workers’ compensation, Social Security benefits, and some self-employment.
If you meet these requirements and fill out the pre-qualification form, a title loan agent will ask you to submit the necessary paperwork. For an online title loan application, you will need the following:
- A Valid Government-Issued Photo I.D.
- Proof of Address
- Proof of a Vehicle Title in Your Name
- Proof of a Steady Income
- Recent Photos of the Vehicle
The final step after submitting your paperwork is awaiting loan approval and receiving your cash! In some cases, qualified borrowers may access their funds within one business day of applying.
How Can I Pay My Title Loans Back?
The great thing about an online car title loan is that you have several convenient options for paying the money back. Paying your title loan back is important because there are risks associated with not doing so. Failure to make payments can result in lenders repossessing your vehicle and reselling it for profit.
While this is typically the last resort a lender wants to take, it’s still important to know about it before applying for a title loan! If you’re struggling to pay your title loans back, contact the lender immediately to explain your situation.
Below are some typical repayment options available when you have a title loan:
- Set Up Automatic Withdrawal From Your Bank Account
- Pay Over the Phone with a Credit or Debit Card
- Send a Check in the Mail
- Pay at a Money Transfer Location in Your Area
Inquire About an Online Title Loan Today
Title loan payments are typically due monthly, and the length of the payment plan can depend on several factors. If you’re struggling to pay your loan back, contact the lender immediately to explain your situation, and they may be able to renegotiate the terms with you. If you need cash quickly, title loans could be your short-term solution!