A secured car loan is a short-term loan secured by the ownership of your vehicle. A car loan can be up to $10,000 for up to 30 days. The cost of the loan includes the sum of the interest rate and commission fees. The average interest rate on a car loan is about 300% per annum. When you receive such a loan, you can continue to use your car if you make payments on time.
How do online title car loans work?
The online lending process includes the following steps.
- At the first stage, the borrower needs to decide how much loan he needs. You also need to find out if you can get a loan in your state and what restrictions on lending exist.
- At the second stage, you choose a credit company and fill out an online application. In this case, most often you do not need to physically visit the office of the credit company, it will be enough to provide photos of your car, as well as full information about it. If a credit institution requires a physical inspection of the car, then you will either have to complete the loan process at the office of the credit company, or simply turn to another lender.
- At the third stage, the credit organization checks your personal information, after which it offers you to conclude a loan agreement, receiving from you the ownership of your car as collateral, leaving you the right to drive a car.
- At the fourth stage, within a short period of time (often within an hour), you receive a car loan to your bank account without spending a lot of time physically visiting the office of the loan company.
- At the fifth stage, you undertake to repay the loan on the terms that were stipulated in the loan agreement.
Online car loans can be loans with a lump sum payment or can be provided in installments. In the first case, the payment is made in a lump sum within 30 days and their average annual interest rate is about 300%. The second case involves more flexible payments (within 3-6 months). The interest rate on it is about 260%. In both the first and second cases, you continue to use your vehicle. You will not lose your car if you make timely payments for using the loan.
What are the requirements?
To get an online car loan, the borrower must meet some standard requirements:
- provide the lender with the name of the vehicle to be used as collateral for the online loan, as well as the ownership of the vehicle. In order to inspect the vehicle and evaluate its value, it is not necessary to present it for a physical examination. Often, representatives of a credit institution will do this from the photographs that you provide when filling out an online application;
- be able to verify your income as well as employment. You have the opportunity to find a lender who will provide you with a loan for the right to own a car without requiring proof of your income; – have a state-issued identity card;
- be a US resident;
- have a bank account and provide its number to the lender for a quick transfer of funds.
What are the benefits of same day Title Loans?
The main advantages of online car loans are:
- the process of online application and loan approval is simple and fast and takes no more than 10 minutes;
- interest rates on such loans are competitive compared to some other loan products;
- for obtaining such a loan, the borrower’s credit rating and his bad credit history do not matter;
- the loan can be repaid not at a time, but with an installment payment;
- the creditworthiness of the borrower is not subjected to strict scrutiny;
- financing under this type of lending is instant;
- there is no need to physically visit the office of a credit institution, which saves you time. To get a loan, you just need to make sure that your device has a stable internet connection, so that the process of transferring the requested images will be smooth and fast. To further expedite this process, you will need to prepare the necessary documents for uploading in advance, which are the title to the car, photos of your vehicle, ID, registration and income (if required). If you have all the documents available, then you can provide them to the lender right now, without leaving your home.
Same Day Loan Options
When you need emergency financing, it’s important to have a variety of options to choose from. The most popular loan types that offer same day cash are: