If you were to encounter a $1,000 emergency expense, would you be able to cover it with cash?
If not, you’re not alone: six in 10 people in the US reported being in the same boat. Some also said they’d need to take on new credit to pay for that unexpected bill.
So, if you’re in dire need of funds, you may be considering taking out a loan. In that case, applying for car title loans online, provided you own a vehicle, is one of your options.
Before taking that route, though, it’s imperative to know more about title loans. We’ll give you the low-down in this guide, so be sure to read on.
What Are Title Loans?
Title loans, also known as auto or car title loans, are short-term loans backed by the title of a vehicle. That makes them a secured type of loan, in which the title serves as collateral. However, that also means the lender can seize your vehicle as repayment if you default on the loan.
How Much Can You Borrow?
Title lenders base the loan amount on a percentage of the vehicle’s current market value. That depends on where you live, but it can range from 25% to 50% in the US. So, if your ride is worth $15,000, you may be able to borrow $3,750 to $7,500.
However, some states have stricter title lending rules, putting a cap on loan amounts. For instance, Kansas limits title loan amounts to a maximum of $2,500.
How Do You Apply for Title Loans Online?
Some title lenders allow you to apply online but still require you to bring your car to their office. That’s because they must give your ride a physical inspection to determine its value.
Fortunately, other lenders implement a completely online application process. That involves filling out the application form and uploading other documentary requirements online. The latter includes your title and photos of your vehicle from various angles.
Those pictures, in turn, will provide the lender with a way to assess and value your vehicle. As such, they may no longer require you to take your car to their brick-and-mortar location.
Most lenders also require a government-issued ID, proof of residency, and auto insurance. They also need copies of payslips or bank statements to prove that you can pay back the loan. You can scan all these documents and then send them online.
So, if you’d rather apply without going out, look for a lender with online-only applications.
How Soon Can You Get Your Money?
As per www.onlinetitleloans.net, some lenders issue funds the same day they approve the loan.
So, the earlier during the day that you apply, the sooner the lender can process your application. They will then notify you if you get approved or not.
If yes, you might get the money you need before the day ends.
Consider Title Loans During Emergencies
As you can see, applying for title loans online is an easy and convenient way to use your car as a source of funds. However, please keep in mind that these loans also come with high-interest rates.
For that reason, it’s best to apply for auto title loans only when you’re in dire need of emergency cash.
If you want to learn more money-making tips, we have you covered. We’ve got more financial guides on our site, so feel free to read up on them!