Car title loans have been around for years. Much like payday loans and bank installment loans, they offer you a way to get a lump sum of cash in a short amount of time. What makes title loans different from these short term loans is the fact that you’re securing your vehicle to the loan. That’s right, with most types of online title loans you must let the lender attach a lien to your car. Here’s the good news though, with a title loan you can get a lot more money than what you would expect to get with a traditional bank loan. You might have some concern about attaching your car title to a loan that otherwise may have been unsecured. There’s a few things to remember though with an online title loan. With the advent of online lenders, there are more companies ready and willing to offer online title loans. This means there’s more competition and lenders have a lot more flexibility when it comes to getting you a loan that fits your needs. Also, you no longer have to worry about giving up your vehicle to get a title loan. It used to be that to get an online title loan you would have to give up your car. That doesn’t make much sense now does it? How would you get to work, or run the normal errands that you need to take care off. With nearly all title lenders today you can rest comfortably knowing you will keep your car as long as you stay current on your monthly payments. There are many choices available but we recommend to start with an application for a car title loan online. Once you complete the monthly installments for the loan you will be done with the title loan and you will no longer have a lien attached to your vehicle.
Another aspect of car title loans online that you need to understand is how the online application process works. Unlike the process of applying for a payday loan or bank loan, you will need to submit more paperwork for a title loan. Reason being, the online lender needs to verify you’re the current owner. They need to make sure you have no liens or other issues that could impact your title situation. You also need to verify the car exists. Believe it or not, some people try to apply for title loans online without verifying they even have a car! Like most other types of short term loans title loans have got a bad rap over the past few years. People say the interest rates are too high or they say some lenders will immediately seize your vehicle. This can happen if you fall even one day behind on your monthly payments. Most lenders will dispute the fact that interest rates are too high or that they’re taking advantage of people that are in need of quick cash. They say the interest rates need to be high because they won’t generally check your credit. Also if you have past loan delinquencies or other financial issues that won’t always disqualify you for a loan. Keep in mind, car title loans are going to be expensive and they should only be used for a short term financial crisis. While it’s good to know you have equity in your car you don’t want to find yourself in a situation where you took out a title loan and fell behind on your payments. When you get to that point you run the risk of losing your car and owing money on the outstanding title loan! Don’t fall into this position. Most lenders of car title loans online will try to work with you if a payment becomes past due. Another thing to remember is the fact that you have rights as a consumer. Even if you fall behind on an online title loan and your car gets repossessed the lender still has to follow specific rules on how to handle the situation. We would urge you to seek legal assistance if you find yourself dealing with this scenario. Don’t think that this type of financing is the only resource available to you. Look into other options like bank loans and even small business loans if you own a company. The Us Government has a great online resource that profiles different SBA financing options. Car title loans online are a valid resource but you should only take out a loan if you know what you’re doing.