Most lenders have simplified the application process for title loans. Almost every credible lender has an official online presence and there are aggregator sites where you can compare loans from multiple lenders to find the best proposition. You can apply for a title loan online but you must understand all the state statutes pertaining to such lending and put together all the documents necessary for such an application. Here is a comprehensive guide to help you apply for an online title loan in three steps.
A title loan is a secured loan offered against an asset, also known as collateral, security or guarantor. The collateral could be any valuable asset. However, most title loans are designed to use a vehicle as the collateral. The generic understanding of title loan will not suffice since there are different state laws across the country regulating how lenders can operate and what type of propositions they can put forth. You have to familiarize yourself with your state laws.
For example, Florida has a state law that allows borrowers to make partial payments towards the unpaid loan amount and interest accrued. The same law prohibits lenders from selling any associated insurance. There cannot be any prepayment penalties and such loans should have a minimum of thirty days for the borrower to repay. Florida also caps the rate of interest title loan lenders can charge. It is a max 30% for the first $2,000, max 24% for loan amounts between $2,000 and $3,000 and max 18% for amounts greater than $3,000. Mississippi caps the maximum amount you can borrow as a title loan. It is $2,500. The law also caps the maximum rate of interest at 25%.
It is imperative you look for a registered and licensed online title loan lender in your state. Every state needs title loan lenders to register their business as such and most states have a law in place to license such lenders. Should you choose to do business with an unregistered or unlicensed lender, there will be no legal remedies available if something goes wrong. It is better to deal with a reputable lender that has a proven to be credible. You can find a list of companies that offer online title loans at directories such as topcartitleloans.org.
You don’t need to physically check with every lender these days. You can use an aggregator or consult a title loan expert who would get you several quotes from multiple lenders. You can compare all the quotes and make an informed decision after you have read the fine print. Always assess quotes based on your eligibility. It is futile to consider generic quotes without factoring in the actual value of the vehicle you own, if it is completely paid for or if a part of the auto or car loan is yet to be paid. Do not just compare loan amounts and rates of interest. Dive into the terms of repayment, if there are any penalties or implicit processing charges.
Title loan lenders will have their own application process but most of them will have some standard requirements. You will need to furnish proof of your identification including proof of residence. The latter can be a temporary or permanent address. You should provide proof of income. It could be a pay slip or you may furnish a bank statement. You need to prove ownership of the vehicle you are using as collateral. If the auto loan is yet to be fully repaid, then you may have to provide such details. Prepare digital copies of all these documents and proofs, decide if you would be applying to one lender or more, go to their official website and follow the application process. You should hear back from them soon and based on the fine print you can choose one over the others.