You may have heard of title loans before, or perhaps you’re not familiar. If you need some money quickly, though, it’s worth considering one. You should also know that you can often apply online if you decide you want a title loan.
We will discuss title loans right now and getting online ones in particular. If you’ve decided to look for title loans near me, you should first know about the whole process and what you can expect.
What Exactly is a Title Loan?
If you don’t know this term, a title loan is one that you get from a lending entity such as a credit union or bank. You can also find certain other entities that can willingly give you title loans.
If you want one, you must have a car. The title in the term “title loan” means your car’s title. That’s a document you possess that states that you own the vehicle.
If you own a car, then you should have its title. You’ll probably keep it at home in a filing cabinet or somewhere else where it’s secure. You should never keep it in the vehicle itself, since someone can steal it or you might misplace it.
If you approach a lending entity and tell them that you want a title loan, you are using your car as collateral. This means a title loan falls into the secured loan category.
A secured loan means one where you put something up as collateral. If you don’t have a vehicle, you can use something like your house, some expensive jewelry, some antiques, valuable collectibles, etc.
You may also hear the term unsecured loan. That kind means you approach a credit union, bank, or some other lending entity and ask for a loan, but you don’t put up anything valuable. Instead, they feel you’re a reasonable loan candidate because you have a good job and a solid credit score.
How Do You Get a Title Loan?
You can get a title loan one of two ways. Usually, you can either walk into a place that gives loans, like a credit union, bank, or something similar.
You can have the car’s title with you, indicating you own it. In these instances, you should also have the vehicle itself nearby so that the lending entity can confirm you have it and that it’s in drivable condition.
You can also sometimes get title loans online. If you do that, you go through a process where you establish you own the car and have the title that goes with it. You’ll fill out a signup form, and if the entity approves your application, you should get that money within approximately one business day.
You will likely tell the lender your bank account number, and they will route you that money. You might also request a check, and they will send you one in the mail.
What Else Should You Know About the Process?
The process should not take long if you apply online. The lending entities that offer online title loans have it down to a science at this point. They can very quickly determine whether they consider you a suitable candidate.
There’s a main question with title loans that you should answer before you get one. You must think about whether you’re confident you can pay back the loan on time if the lender grants you one.
Title loans are not long-term loans. You won’t get that money and have a year or two to pay it back. Instead, you will probably have thirty days. It’s a high-interest loan that you must pay back very quickly.
Because of this, you should feel sure you can get the full amount you owe and give the lender that, along with the interest, within the designated period. If you can’t do that, then you risk losing the car.
The lender has a lien on it once you take out the loan. That means they can legally claim it if you can’t pay them back.
This loan type has some inherent risk, like all secured loans. Any time you put up something valuable, like your car or house, you risk losing it. That is why you should think carefully before getting money this way. Often, you can get cash in less risky ways.
Should You Get an Online Title Loan or Approach a Brick-and-Mortar Lender Instead?
With online title loan applications and websites, you have convenience. You can apply very quickly, usually in just a few minutes. You should also very quickly get a response. Many times, if you own the car and have the title, you can get the loan you need.
However, if you apply online, you might not feel so sure about the lending entity’s viability. You will sometimes find some fly-by-night lenders online with not-so-great reputations.
If you are going into a large bank or credit union, by contrast, you probably know all about that entity and its reputation. You may feel more comfortable doing that. If you do, you can also talk to someone face to face and ask them any questions about the loan that you might have.
If you go through an online lender, then at least learn what you can about them before moving forward.
Look up this entity using sites like the Better Business Bureau or Angie’s List.
If they seem reputable, then you can get the loan more confidently. If many people have horror stories about this particular entity, then you should probably use a different one.
You should also check the interest rate that this entity offers you versus the ones which other online lenders do. You will want the lowest possible interest rate, and you should get at least a few quotes before you pick one.
Then, all you must do is pay back that money on time. That way, you won’t risk having the lender repossess your car if your loan becomes delinquent.