Online title loans are now available in many states. Additionally, as a result of multiple reasons, a larger number of consumers are looking for a completely online solution for various financial services.
This includes banking as well as title loans. There is an increased demand for getting a car title loan without having to visit a lender. This means a certain type of car title loan online is required.
One of the main questions, and for good reason, that comes up when getting an online title loan is how long do they take?
We have tried to answer this question before but this post will focus on what parts of the title loan take time and what that time actually looks like.
Best Case – Same Day Online Title Loans
Regardless of the fact that there are what some companies call instant online title loans, the fastest title loan possible (that is completed 100% online) is one that is funded the same day.
For this to occur everything needs to go smoothly without any delays. Preparing is highly recommended.
Preparation helps with Delays
Preparing for a title loan, as we have written about many times, is recommended to help ensure there are no unexpected funding delays. Proper preparation also helps you complete the online title loan application fast.
Online Title Loan Process Times
There are several steps to getting an online title loan funded. Each takes a certain amount of time, even if only a few minutes. We describe each of the noteworthy steps, along with likely timeframes and some tips to help ensure no delays.
Technically the time spent prior to applying doesn’t factor in, but it is important to note for multiple reasons. First, rushing into a title loan by applying with the first title loan company you find often results in a high interest loan that can cause problems.
Taking a little bit of time, prior to applying, to find the best title loan is highly recommended. This helps you find the best title loan company and the lender that will fund your loan fast.
Once you find the lender you want to go with then simply apply. This process usually only takes a few minutes if you completed the preparation steps properly.
If no preparation was done, then this process can take much longer. Some common delays include:
- Ordering a replacement title
- Printing an insurance card
- Taking vehicle pictures
- Looking up pay statements
Properly preparing means having all of your information ready and in one place when you’re ready to apply. If this is the case then it should only take a few minutes.
The time it takes from when you apply for the online title loan and when it gets approved will vary depending on the lender.
If you provided all necessary information with your application and submitted it during the lender’s normal hours of operation then approval can be done very fast. In many cases this can be less than 30 minutes.
To approve the online title loan the lender must assign a value to your vehicle. With a completely online title loan this is doen with no physical inspection and without the lender seeing the vehicle in person.
The lender must appraise the vehicle to assign an accurate value. We call this a virtual appraisal when it is done completely online.
This lender will look at pictures of your vehicle, combined with a vehicle history report and any other information you provided, to assign a value.
Verification of Information
Along with assigning a vehicle value the lender will also need to verify information on the application prior to approval. Often this can be done with a quick phone call.
For online title loans without phone calls another method, such as text or email, may be used. To ensure there are no unnecessary delays, be sure to respond quickly to any requests.
Online Title Loan Agreement
Once approved, the borrower will need to complete the title loan agreement prior to loan funding. The lender typically has a method for completing this agreement electronically, to ensure it can be completed quickly.
Read the Agreement in Full Before Signing
This part of the online title loan process is extremely important and is worth taking as much time as you need to complete. The loan agreement contains the information that governs how your loan will operate.
This includes how much the loan will cost, how to make payments, any fees associated with the loan, what happens if you miss a payment, how reposessions are handled, and every other term andcondition related to the loan.
It is critical that you fully understand all parts of the agreement to ensure you are able to meet the terms and conditions spelled out. If there is any question about anything in the agreement then ask for an explanation.
Online Title Loan Funding
Following the signing of the loan agreement the lender will fund the loan. In some states the lender may require you to send your title to them prior to funding.
This can be sent overnight if the loan is urgent. In these cases, the loan would usually be funded as soon as the lender receives the title.
A common funding method for online title loans is direct deposit into a checking account. This is not the only method however. There are several other possible finding methods including a bank wire (if time is urgent), a paper check, and a debit card.
As for time to fund, the bank wire is fastest, and the paper check is the slowest. Direct deposit and a debit card are relatively fast.
Total Time for Online Title Loans
The total time it takes to get and receive the funds from an online title loan can be anywhere from the same day to several days. Preparing for the loan, including finding the best title loan company, will help ensure there are no unnecessary delays.