As a result of Covid-19, online car title loans with no store visit are now a necessity for many borrowers. Many consumers are staying at home to avoid unnecessary risks. This makes the need for completing a car title loan online with no store visit greater than it was just a few months ago.
It may be a while before life gets back to normal and we can visit stores like we used to. This may include visiting title lenders. Different states will resume operations at different rates. This makes having an online option a priority for some borrowers.
So, how do you get a car title loan online? How do you make sure there is no need to visit a lender’s store or inspector? It can be confusing when looking for an online car title loan. It is not always clear whether or not the lender will require either a store visit or an on person inspection.
Prepare for the Loan
We always start any title loan recommendation with preparation. This is no different for finding a loan that does not require an in person inspection or visit. Preparing for a car title loan is a key step that is often overlooked. Important preparation steps include:
- Defining the costs and benefits associated with the loan.
- Ensuring you meet the criteria to be a good title loan candidate.
- Making sure you meet the title loan requirements.
- Finding the best lender for your situation (100% online for this case)
- Getting all information together to make applying easy.
We cover each of the preparation steps in more detail in our complete guide for getting a car title loan.
Applying for an Online Title Loan with no Store Visit
Following preparation, the first step to getting an online car title loan is to apply for one. As we mentioned, preparation before applying is key for several reasons. First is making sure a car title loan makes sense for your situation.
Car title loans are not the answer to every financial problem and should only be used when they make sense. The benefits received from the loan should outweigh the costs associated with repaying the loan. In some cases these costs can be excessive.
Second is ensuring you meet the title loan requirements. Applying for an online title loan without meeting the requirements is not a good use of time.
Finally, getting your information in order prior to applying helps ensure your loan is funded fast with no delays. Most title loans are time sensitive so this part will save you time in the long run.
Finding the Lender
Finding the right lender to apply with is one of the challenges associated with getting an online title loan. There are more title loan companies today and many advertise completely online title loans. We published a post on how to get the best online title loan which provide more details on finding the right lender.
Additionally, the state you reside in will affect how the loan can be processed. In some states it is easier to get a loan with no inspection or store visit. In others, the lender is required to physically see the vehicle and have you physically sign the loan agreement.
In these states some lenders will come to you to allow you to still get the loan without leaving your home. To find out how these loans are handled in your state contact your lender and ask before applying.
Making sure the Cost is Affordable
The total loan cost is just as important as the monthly payment. Use our car title loan calculator to get both for any loan amount. Make sure you can afford the monthly payment and that the total loan cost is reasonable.
Online Title Loan Application Process Differences
There are some differences between the application process for an online title loan and a traditional title loan. To avoid the store visit and inspection, you will need to provide sufficient information to allow the lender to assess your vehicle’s value.
This is typically pictures of the vehicle at a minimum. You should be prepared to provide pictures of the following:
- Exterior – Front, Rear, Both Sides
- VIN – on the dash under the windshield
- VIN – Driver’s side door pillar
- Interior – Seats, carpet, headliner, and dash
- Odometer – to show mileage
This is usually all that is required to avoid an in person inspection. If you have any other information related to the value of the vehicle, such as aftermarket equipment, service records, or other, have the information ready when applying.
Loan Amount Determination
The online title loan amount is based on the vehicle value and your ability to repay the loan. First, the lender will asses the information provided with the application to value the vehicle. The maximum title loan amount is limited to 50% of the car’s value most of the time.
This is based on the assumption that you can afford the monthly payment associated with the title loan. You will need to provide some sort of proof of your ability to repay the loan. Typically this is proof of income such as two recent pay statements or equivalent.
It does not have to be. You can use any source of funds to repay the loan. In rare cases, this can be the vehicle itself. It is possible to get a title loan without income verification by using the vehicle.
Online Title Loan Approval
Car title loans are fast and usually approved fast. One of the benefits of an online title loan is the speed at which you can get your loan both approved and funded. Assuming you meet the requirements and completed your application fully, you should have an approval decision quickly.
Completing the Loan Agreement
Following approval you will typically be provided with a loan agreement to review and sign. The loan agreement will have the terms and conditions related to your loan. There should be a Truth In Lending Statement on the first page.
Read the Loan Agreement In Full
We say this often and it is still the most important piece of advise for anyone getting a title loan. Read the loan agreement in full before signing it. Make sure you understand every term and condition. Once your done reading the agreement, read it again.
If you have a question about something, ask it. If you don’t get a satisfactory answer move on to another lender. While reviewing the loan agreement be certain to understand the following:
Total Loan Cost
Some lenders are making longer title loans. This is especially true with some online title lenders. Some will have you focus on the monthly payment rather than the total loan cost.
The problem with a high interest loan like a title loan is that when you extend it past a year the cost increases significantly. It can end up costing three, four, five or even more times the original loan amount. Even worse, the monthly payment savings is minimal after a certain term. This is illustrated in our title loan costs post.
Payment Methods
Also make sure the lender has a conveniently way for you to make your payments. Most online lenders will let you pay online; although some do charge a convenience fee.
Make sure you can make your payments on time easily; and that the lender has a payment method you can use without having to leave your home. It won’t do a lot of good to get a title loan without leaving your home if you have to leave your home every time you need to make a payment.
Default Cure Process
Nobody plans on defaulting on a title loan, but the unexpected does happen. Understand their process for curing a default to avoid repossession should you miss a payment.
Online Title Loan Funding
After signing the loan agreement and providing you title the lender will fund the loan. Online title loans are often funded by direct deposit into your checking account. You can also choose to have a check mailed to you. If you do not have a checking account, some lenders will add the funds to a debit card.
Summary
Getting an online title loan without visiting a store is easier than it used to be. Complete the right preparation steps and find the best title loan company. Regardless of the company always make sure to read the loan agreement in full before signing. Remember, only borrow what you need and keep the loan term as short as possible.