With more people shopping for online title loans and more companies offering online options it makes sense to get an understanding of the different types of online title loans and how they work.
There are several different types of online title loans, we break them up into two main categories:
- Partially online title loans
- Completely online title loans
The main difference between these two types is an in-person requirement. This in-person requirement can be an inspection, appraisal, and full loan processing (signing the loan agreement).
Partially Online Title Loans
These are the loans where there is an in-person component. This can be an inspection, a store visit, or other in-person requirements. You can usually apply for these loans 100% online with no need to visit a store, but to complete the loan you will either need to:
- Visit an inspector
- Go to a store
- Visit a notary
In other words you will need to leave your home to complete a partially online title loan. Many times this includes filling out the application online and either visiting the lender to sign the paperwork or visiting one of the lender’s affiliates to either complete an inspection or appraisal.
The specific in-person requirements depend on both the state and the lender.
Completely Online Title Loans
A completely online title loan is one that can be initiated online to begin the process. In many cases the entire process, from application to loan funding, can be done over the internet without ever needing to leave home.
This is not the case for all states and all lenders, however, and in some cases you may be required to sign documentation in person. There are several types of completely online title loans:
- Completely Online Title Loans No Inspection
- Online Title Loans no Phone Calls
- Instant Online Title Loans
Completely Online Title Loans No Inspection
Prior to online title loans the vehicle inspection or appraisal was an important part of the process. The fact that title loans are based on vehicle value makes an accurate appraisal of the condition an important factor to determining the max loan amount.
This is still the case, only with a completely online title loan with no inspection the appraisal is done virtually. This is similar to may car buying services and even online car sales.
With detailed pictures and a vehicle history report it is possible to accurately appraise a vehicle without actually seeing the car. This means that yeas it is possible to get a title loan without bringing the vehicle in.
Online Title Loans no Phone Calls
Some borrowers and title loan customers prefer not to have a phone call as part of the process. This can be for various reasons. The most common of which include:
- Not having time during the day to talk to a lender (work related)
- Some lenders can try to use sales tactics that many borrowers prefer not to deal with
It is certainly possible to get an online title loan without a phone call as long as you can transmit all required information online either by uploading or through email.
Additionally the lender often places a short phone call to verify the information in your application is complete and accurate. You will need to provide another method to do so which can be email or text.
Instant Online Title Loans
There are also plenty of lenders advertising an instant online title loan. These are simply completely online title loans that can be funded quickly. Some have fast, or close to instant, approval. However, funding does take some time.
Monthly Installment Online Title Loans
Many online title loans have monthly payments, or monthly installments. These work the same as any another monthly installment loan. The loan is amortized over the loan term and the same amount is due each month.
It is important to keep in mind that the longer the loan, the more interest will accrue. Some title loans have high interest rates and each day of interest can make a difference in the total loan cost. Make a title loan too long and the interest charges can become unreasonable very fast. If you are stuck in a loan with unfavorable terms and high costs then consider a title loan refinance to reduce costs.
There are now several types of online title loans and most likely if you need a title loan you can find one that meets your needs. This includes those without store visits, inspections, phone calls, and credit checks.
Additionally, there are two general types of title loans – single payment and monthly installment. Single payment title loans have one payment due at the end of the loan term. Monthly installment loans are usually amortized over the loan term with equal payments due each month.