Completely online title loans with no inspection and no store visit are fairly new to the title loan industry. These are also know as “100% Online Title Loans with no Store visit”. As we have written about before, these types of loans have both benefits and risks (advantages and disadvantages). If you are new to title loans it is worth learning how car title loans work. To fully understand them; we’ll take a look at a regular Online Title Loan. First, let’s discuss the challenge with finding factual information relating to completely online title loans.
Where to find Online Title Loan Information
There are so many articles about online title loans on the internet today that it can be very difficult to find a source of factual information. Many lenders write and publish articles to generate business by claiming title loans are great; and, more specifically, their title loans are the answer to all of your problems. Other articles paint title loans and online title loans in a negative light. Many of these articles claim title loans are bad and should be avoided at all costs.
The truth is most online publishers have an agenda. Title lenders want you to get a title loan. Their competitors (banks, credit card companies, Payday lenders, etc) do not want you to get a title loan. Try to find some unbiased sources of information and go directly to the title lender to find out their costs and terms.
Regular Online Title Loans
The typical online title loan begins with an easy to complete online or phone application. The information you provide in the application determines your eligibility for a title loan. The lender makes that determination and contacts you shortly after. The next part of the process involves taking the vehicle to either the lender or a third party acting on behalf of the lender. They will perform a brief inspection to verify the VIN number and vehicle condition.
During this visit, you will provide your title and complete and sign the loan documentation. The lender funds your loan and you make your payments just like you would with any other title loan. If there is a problem with your loan, you have somewhere to go. This is one of the benefits with the regular online title loan. Just like with other car title loans you will have a place to contact or visit to make payments or deal with unforeseen issues.
How to get Online Title Loans with No Inspection
A completely online title loan with no inspection or store visit involves completing the entire process online and through the mail. These loans are not available in all states.
You will start the process by filling out an online application. Because there is no inspection, the lender has no physical way to verify the condition or location of the vehicle. This translates to higher risk. To mitigate this risk, the application will require more information than a regular title loan. This includes several personal references, detailed pictures of the vehicle, information on your employer, and in some cases a credit check. Additionally, because the risk to the lender is greater, they may offset this by increasing the interest rate. This is one thing you will want to be aware of if you are in the process of applying for an online title loan with no inspection.
The risk for you, the borrower, is if you miss a payment the lender may contact your employer and your references. This is something to take into consideration when weighing how much a no inspection title loan is worth to you. Additionally, there may be a hard inquiry on your credit report if the lender runs a credit check.
What are the Risks with Online Title Loans no Store Visit?
As you would probably expect, the more risk associated with no inspection and no store visit online title loans in most cases equates to higher interest rates. Why? The answer is simple. Some applicants are specifically looking for a no inspection title loan because there is something that would be noticed in an inspection to lower the value of the vehicle. It could be a mechanical or other issue that is easily masked with photos but not in person.
If and when these customers default, the lender may not be able to recover the cost of the loan. The rate for everyone is increased to make up for this. So, if you have a vehicle that has nothing to hide, why pay more for a no inspection title loan?
Why Pay More for a completely Online Title Loan with no Inspection?
To avoid paying more for an online title loan with no inspection or store visit you should find the lender with the best interest rates. Fast Title Lenders specializes in providing the best title loans with the best interest rates.
A completely online title loan with no inspection or store visit may sound like a convenient option. A regular car title loan may be an option if you have local lenders. We recently published a complete guide on how to get a title loan that describes the entire title loan process in detail. You can also read the definition of a car title loan from investopedia. You need to weigh the extra information required, and the additional cost associated, to determine if one makes sense for you. If the reason you want to avoid the inspection has to do with a defect in the vehicle, you may want to consider what your long term plan is.