The concept of an instant online title loan sounds interesting and tempting. Fill out a form online and have money directly deposited into your bank account instantaneously; sound great, right?
However, in practice, an “instant online title loan” is really just another name for a fast title loan that you can complete online.
Fast Title Lenders does our best to provide information about car title loans, and will attempt to explain the topic of instant online title loans, what they really are, and what they really aren’t.
Fast versus Instant Online Title Loan
Instant online title loans do fund faster than many other loan types; significantly faster in some cases. However, they still require some time to both process and complete, even when funded online by direct deposit or bank wire.
While there is no title loan that is immediate, there are rapid online title loans that are comparatively very fast. Just keep in mind that even the fastest title loans do take some time.
Car title loans do have fewer underwriting requirements when compared to many other loan types. This does make them easier to get both approved or and funded faster in most cases.
Finding a lender that follows a streamlined and optimized process, as well as offers online title loans with direct deposit, helps ensure the process is completed quickly. This helps customers get the cash they need as fast as possible.
You can visit a title lender in-person and complete the process within 30 minutes if you have all of your information with you. That is about as close to an instant title loan as practical. Online title loans do take longer than 30 minutes to fund; we’ll explain why and how long shortly.
Car Title Loans Online with Instant Approval?
It is important to note that a car title loan online with instant approval does not mean instant funding. In addition, approval also takes time; even if only a few minutes. It is usually done swiftly and quickly, but does require verification of information.
As discussed in a previous post about online title loans, there are several different types. These include with inspection and completely online title loans with no phone calls or inspection as well as loans with and without a store visit.
Generally, as more parts of the process are streamlined electronically, the loan speed will increase over time.
In Person versus Instant Online Title Loan Times
Unfortunately, completing the entire process today is not “instant” or instantaneous. In fact, some online loans can take longer, in some cases significantly longer, to fund, than a direct title loan from a lender with a brick and mortar location.
Any title loan company that is promising an instant online title loan, or a 30 second title loan, is probably not providing accurate time related information.
As we’ve said many times, always read the loan agreement in full before signing and make sure you’re dealing with a reputable title loan company.
Funding Times are Different than Approval Times
Additionally, it is important to note that approval times are very different than funding times. A title loan can be approved very fast or expeditiously and still take time to fund. Make sure to check with your lender if funding time is important to you.
While customers can usually get approved for a title loan quickly, this does not always mean the loan will be funded fast. If you have to mail the title to the lender before they fund the loan, this can take time.
What is an Instant Online Title Loan?
Instant online title loans are simply fast online title loans advertised with the word “instant”. There are plenty of lenders advertising these loans.
Just remember to check with your lender if you have an immediate need for cash. A streamlined and optimized title loan process can reduce the time it takes, but nothing is instant.
Considering no car title loan is immediate, the better question is, what is an online title loan?
Online title loans are a way to get fast cash for unexpected expenses using the equity in your vehicle as collateral. If you own your vehicle then you have access to its equity.
They are very similar to storefront (in-person) title loans, except the borrower completes the process electronically (online) instead of in person.
It can be challenging to find accurate and complete information about how title loans work from online sources. Make sure to read information from multiple sources. Outdated, biased, or incomplete information still is prevalent.
Add to that the fact that title loans are treated differently in each state and regulations can change often, and you can see how information that may have been accurate when published is no longer the case.
One non-biased source is the FTC, that is a good start.
We do our best to provide information related to car title loans and how they work, and make sure is is up to date information. This includes important information such as how to calculate interest and how to save on your next title loan.
Back to online title loans – they are very similar to traditional title loans only part, or all, of the process is completed online or over the internet.
However, depending on the lender, the portion of the loan completed online can range from just the application to the full funding and servicing of the loan.
As with any other loan, there are costs, benefits, and risks associated with online title loans. If you are considering one, always make sure the benefits outweigh the costs and risks by performing a cost benefit analysis.
How do Instant Online Title Loans work?
The instant online title loan process begins with an online application or inquiry. The application is reviewed by the lender and then either denied or approved with a corresponding maximum loan amount.
It is important to note that just because you are approved for a certain amount does not mean that is the ideal loan amount. The more you borrow, the higher the interest costs.
Following approval and signing the loan agreement you are provided the funds; by check, direct deposit, or other method such as a debit card. Then you make payments just like any other title loan.
Instant Online Title Loan Process Summary:
The process for getting an instant online title loan is usually quick and easy. There are five high level steps. Three before loan funding, and two after loan funding:
Step 1 – Apply Online
The first step is to fill out the easy instant online application. This only takes a few minutes and requires no commitment and no credit check. We recommend preparation prior to applying.
Step 2 – Get Approved
Next, you will need to get approved. This assumes you qualify for an instant online title loan. Approval is usually easy with no credit check. Proper preparations helps ensure there are no delays as a result of incomplete information.
Step 3 – Get Funded
Finally, your loan is funded, often by direct deposit. Other methods include a paper check or even a debit card. If you have a preference it is important to specify.
Step 4 – Make Your Payments
After your loan is funded you need to make your payments. Most “How It Works” explanations end after step 3: get your funds. This is actually only the beginning of the loan servicing.
This is where you will spend the vast majority of your time. Repaying the loan is critical to keeping your car. Missing payments can result in late fees, interest charges, and even default and repossession. This is one of the reasons why preparation for the loan is a critical step.
Step 5 – Get Your Title Back
Finally, after you make your final payment you get your title back. This is the best part of any online title loan; when you are done with all of your payments and get to move on.
Understanding the complete instant online title loan process is important. It is not always as easy as ‘1 2 3’ like many lenders would have you believe. The sooner you start thinking about repaying the loan the better.
How do I Apply for an Instant Title Loan Online?
To start the process simply apply online by filling out a simple form. There is usually no credit score check so bad credit, no credit, does not typically factor into getting approved for the title loan.
Preparation is Important
We highly recommend preparing prior to applying for an instant online title loan. When we say prepare we’re talking about the key preparation steps for a fast online title loan that we often mention. Preparation is even more important for instant title loans for two key reasons:
- The need for accurate information when applying to avoid delay.
- To find the best deal and the fastest title loan.
Most lenders allow you to start the application process online. We recommend getting an estimate or quote from multiple lenders prior to applying with any particular lender.
Regardless, always read the loan agreement in full before signing.
What are the Credit Requirements (Credit Checks?)
Many lenders do not check credit although it is important to note that some online title lenders do check credit. It is also important to understand the difference between a soft credit check and a hard inquiry.
Most title loans do not require a hard inquiry on your credit report. This provides several benefits, the main one being it does not effect your credit score. Regardless, your credit score typically does not effect the loan amount because the vehicle is collateral.
You can usually qualify for a title loan without having a perfect credit score. Additionally, with no hard inquiry on your credit report, your credit score is not affected when you apply for a car title loan online.
Usually your car is your credit, so good credit or bad credit does not affect your car title loan amount or interest rate. In fact, it is possible to use a title loan to increase your credit score with an innovative method if you need to quickly increase your score.
Are there No Inspection Instant Online Title Loans?
It is now possible to get an car title loan online with no inspection, but these loans are not available in all states.
Instead of an inspection you will need to provide current pictures of your vehicle.
These typically include the exterior, interior, odometer, and VIN. The lender uses the pictures to assess the condition of the vehicle instead of a physical inspection.
This has both positives and negatives. Obviously it is more convenient to complete the inspection without leaving your home.
At the same time, pictures can make it more difficult to assign an accurate value to your vehicle. This may affect your max loan amount.
To ensure your valuation is accurate make sure the vehicle pictures are current. Try to make it easy to assess the vehicle’s condition.
The lender will also use a vehicle history report. If you haven’t checked your vehicle history, now may be a good time to do so.
How long do Instant Online Title Loans take?
Unfortunately, no, there is no title loan that funds instantly; regardless of whether or not an inspection is required. There are also no 30 second title loans or any other time frame that is not realistic.
When you think about it, how could a lender realistically fund a title loan instantly? Use common sense and judgement when selecting a lender. If it sounds too good to be true, it probably is.
The truth is even the fastest online title loans usually take a day at a minimum. 24 hours is possible and same day if you have all preparation steps complete when applying.
Funding time frames depend on the lender, however none are immediate or on-the-spot. You should consider that you will need to apply for the loan, get approved, complete the loan process, and then wait for the funding.
The process will include providing pictures of your vehicle, copies of your documents, and often mailing the original copy of your title.
Some lenders, depending on the state, may also require an appraisal by a third party. This all takes time. Depending on the lender it can be anywhere from a day to a week. The benefit of a vehicle inspection is a more accurate, and often higher, vehicle valuation.
Instant Online Title Loan Requirements:
The requirements for getting an auto title loan online are similar to the requirements for an in person title loan, with the addition of vehicle pictures. Generally, you will need:
- A vehicle with equity,
- Lien free title,
- Drivers license,
- Proof of insurance, and
- Proof of income.
For loans with no inspection there are some additional requirements including vehicle pictures. This includes the exterior, interior, odometer, and VIN.
Some lenders have excessive requirements like a GPS device, roadside assistance programs, and other unnecessary requirements that make the title loan process more complicated.
By complicating the process, this can slow down the process and add costs. We prefer to keep it simple to keep the process fast.
*Online Title Loan Tip: Get funded faster.
Want to make sure you get your title loan funded fast? The key to making sure your loan is funded quickly is having all of the required information and documents ready when you apply.
If you can’t find your title and have to get a replacement, that will add time. If you can’t find your insurance card and have to get a new one, that may also take some time.
Many title loans also require proof of income, so make sure you have your two most recent pay statements with the rest of your information. If you can’t find them and have to print or download replacements, that will take time.
We suggest gathering all the required information and documents and putting them in a single folder or file.
This will ensure there are no unnecessary interruptions to the process and will help make sure your loan gets funded the fastest online. When you go to complete the title loan application you will have everything ready.
Funding Methods – Online Title Loans with Direct Deposit
A common funding method for online title loans is direct deposit into your checking account. There are several other ways to fund the loan including a wire transfer (if time is critical), a paper check, and in some cases a Debit card.
Choose the funding method that makes the most sense for your situation.
What if I don’t have a Bank Account?
While getting a title loan online with direct deposit is the more common and easier method, it does require a checking account.
Title loans, on the other hand, do not require a bank account, so it is possible to get a title loan with no bank account. This just requires funding through one of the other methods.
How much do Instant Title Loans Cost?
Instant title loans typically cost the same as any other title loan; and usually have very high interest rates. There are alternatives, take the time to find the best online title loans at the lowest rates. This has helped make us one of the best title loan companies.
We also developed a title loan calculator to help customers determine the actual costs of title loans. Considering many lenders do not provide cost information readily, you can use the calculator to get an instant estimate.
Generally, car title loans are either single payment loans or monthly installment loans. Many online title loans are monthly installment loans. This means they have monthly payments of both principal and interest.
There are usually no prepayment penalties, however, make sure to confirm this with your lender. Understanding how interest is calculated will also help ensure your next title loan is affordable.
Repayment terms can be anywhere from a month to over a year. A title loan in Florida, for example, has a 30 day repayment period while a title loan in California can last over a year.
Important – Car title loans are short term solutions. They are NOT meant to be long term loans. Making a car title loan a long term loan can cause a substantial increase in cost that can result in a financial problem.
Repayment Methods – Direct Payment or Online Bill Pay
As previously mentioned making your payments is a critical part of the process that should not be overlooked. Make sure you can easily make your payments.
If your loan was funded by direct deposit, then you should be able to make your payments the same way. If not, then online bill pay is another easy alternative that does not require a visit to the lender.
The way we use services is evolving. This includes our use of services from the banking and credit industries. Title loans are a form of credit, although they typically are not talked about in the mainstream.
As more services become electronic and online, we expect title loans to become both faster and easier to complete online.
In fact, 24 hour title loans are more available now. Perhaps the fact that title loans are not permissible in all states is a reason for the slow adoption of technology solutions.
Add that to different rules and regulations in the states that do permit title loans, and you can see the difficulty in attempting to standardize the online title loan process.
Additionally, laws change frequently. While you can get a fast online title loan today, they are far from instant, so keep that in mind. Finally, if you do decide to move forward with an auto title loan online, make sure to find out the funding time frame and method.
Title loans can be completed very fast, in some cases in less than 30 minutes. Online title loans, on the other hand, can be completed the same or next day. This is where it is important to note that approval and funding times are not the same. A title loan can be approved “instantly” but still take a day to fund.
Preparation is a key step to ensuring you not only make the best decision about a title loan, but also ensure your title loan is completed without any unnecessary delays. Preparing includes gathering required information, planning your loan amount, and finding the best title loan company. To get the fastest online title loan the best way is to do so is to have your information complete and ready when applying.
Yes, online title loans with direct deposit are available. Direct deposit is simply a funding method for the online title loan, however it does require having a bank account. Other funding methods are also available including a check and debit card.
Generally, approval for an online title loan can be completed very fast (not quite instant, but can be done within minutes). It is important to note though that approval times and funding times are not the same thing. A title loan can be approved very fast and still take some time to fund depending on the lender.