6 Myths About Getting A Title Loan Online
Whenever buying a product, you should research and read reviews to find out how it works and if it meets your needs. That’s how you can make an informed decision and get the best value for money.
That’s also true for getting a financial product like a loan. You have several choices, so it’s natural to compare different lenders and loan packages—including a title loan online.
Unfortunately, there are many misconceptions about online title loans that prevent people from really understanding their benefits. In this article, we’ll correct the common myths so you can base your decision on actual facts and not hearsay.
Title Loan Myths
Myth: You Need To Have A High Credit Score
High credit scores are required for unsecured loans, which are based entirely on your credit history. Lenders will look to see if you have a history of on-time payments, what kind of credit you’ve used, how long you’ve been using credit, and how much debt you currently have. This helps them to decide if you’re a “credit risk.”
However, a title loan online is a secured loan, where you provide a security or guarantee that you will pay it off. In this case, you offer your vehicle title as collateral.
Myth: You Need To Surrender Your Vehicle
Many people think online title loans require them to give up their car—much like turning over the jewelry to a pawnshop, only to get it back after repaying the loan.
However, online title loans work differently. Instead of taking the property, lenders place a “lien” on the title. A lien is a legal claim that is based on the underlying obligation to pay off the loan. If that obligation isn’t met, the property can be used to satisfy the debt.
So, you can definitely use your car even when you get online title loans, as long as you follow the loan agreement and make payments on time.
Myth: You Can Use Any Title To Get A Loan
The vehicle title must meet certain requirements to be used as collateral.
First, the title must be registered under your name. If it is not, you will have to go to the Department of Motor Vehicles to have it transferred. If the vehicle is owned by a spouse or family member, you can’t take out the loan on their behalf—they must be the ones to apply for it.
Second, the title must be lien-free. That means that it is not already being used as security for another loan, and there are no other judgments or disputes against it.
Third, the vehicle must be owned “free and clear” meaning you’ve paid off the car loan, whether it’s from a bank or in-house dealer financing. That’s because when you take a car loan, the lender will place a lien on the title until the final payment is made.
Myth: You Have To Show Proof Of Income
Some types of loans require you to show a pay stub or other proof of income, but with online title loans that is not a requirement.
A title loan online only requires three things: a lien-free vehicle title, a state-issued ID with a photo (such as a driver’s license), and a vehicle inspection. You don’t have to present any other documents or answer any questions about employment or income.
That makes a title loan online a great loan option for people who are self-employed, have non-employment sources of income like alimony or pension, or have seasonal work. Unlike bank loans, even if you don’t present a pay stub or other proof of employment, you don’t need additional documents to prove your “creditworthiness.”
Myth: It’s Hard To Find A Good Lender
You can find the nearest title loan online in just a few minutes! Just fill out the inquiry form on the At Home Title Loans homepage. Once that’s done, your information will be sent to one of our licensed lenders, who will immediately call you back to assist you with your loan request.
Aside from the online form, you can also call 1-800-514-2274, or use the chat feature to get started.
All the lenders associated with At Home Title Loans are licensed, professional businesses with excellent customer service records. They respond quickly, are transparent about loan packages, and have very fast payouts.
Myth: Loan Approval Takes A Long Time
You can get a title loan online approved in just 1 or 2 days. To get started, all you need to do is fill out the form online and speak to one of our loan specialists to find out more about requirements, the loan amount you can qualify for, payments, etc.
Then, meet up with the loan agent at your desired time and place to inspect the title and your vehicle. If you are eligible, you’ll receive the final documents for e-signature, and get the cash on the same day or the next business day.
Inquire Now
If you have decided to use a title loan online to meet your emergency cash needs and would like At Home Title Loans to assist in finding the right lender for you, use the online form to get connected now.
Once you complete and submit the form, you can speak to a loan specialist to find out more information, including how to get started on your title loan online today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
