What It Means To Get A Title Loan Online: Terms And Definitions To Know
Do you need to raise money quickly to cover emergency expenses? Are you looking at different types of loans, but confused by all the technical terms and requirements? This guide to loans can help.
Aside from giving you a general idea of how loans work, and simple explanations of loan terms, you will find out where you can apply—and what loans can make the process fast, simple, and convenient.
Online Title Loans Terminology You Should Know
Unsecured vs. Secured Loans
When you take out any kind of loan, a lender will look for some kind of guarantee of payment and your capacity to pay it off.
For unsecured loans, the capacity is determined by your credit score, income, and employment stability. This is why banks run a credit check and ask about your job and length of employment.
Unsecured loans usually require a minimum credit score and several documents such as income statements, proof of employment, and tax returns. Unfortunately, this means that people who have bad credit or have not established a credit history will have a hard time getting approved for a loan.
For secured loans, you can use collateral as a guarantee. Collateral is anything you own that has value. Since the loan is backed by collateral, secured loans depend less on income and credit scores for approval.
Credit scores determine a borrower’s “creditworthiness” or his or her ability to pay off a loan. Credit scores range from 300 to 850, with the following levels:
- 300 to 578: Poor. People with poor or bad credit are not likely to be approved for unsecured bank loans.
- 580 – 669: Fair. People with fair credit may be approved for low loan amounts, but may need to be in the upper limits of this range to be approved for higher unsecured loan amounts.
- 670 – 739: Good. People with good credit will be approved for unsecured loan amounts.
- 740 – 799: Very Good. People with very good credit will be approved and generally enjoy lower interest rates or longer payment terms for an unsecured loan.
Credit scores are computed by independent credit bureaus and are based on factors like payment history on past loans, total debt, types of loans, and the length of credit history.
People with a bad credit history, that do not have the option of an unsecured loan, can apply for secured loans. (To find a way to get secured lines of credit in your area, scroll below to see the definition of title loans online.)
Title loans are secured loans where your vehicle title is used as collateral. You can borrow up to $15,000 depending on the vehicle model and condition.
Some people get confused by what “collateral” means, and think that they are required to give up the use of their car during the duration of the loan. That isn’t true. Instead, a lien is placed on your vehicle title, but you will still have the freedom to use your vehicle.
Lien / Lien-free
A lien is a legal claim that gives the lender the right to possess property if the debt is not paid. However, as long as you meet the payment schedules, you can continue using your vehicle just like before.
Once the loan is paid, the lien is lifted from the vehicle title.
Bear in mind that you can’t use the same vehicle as collateral for two simultaneous loans. That is why one of the loan requirements is a lien-free vehicle title. Once the lien is lifted, you are free to use the vehicle as collateral for another loan.
Online Title Loans Meaning
Some traditional lenders only offer the option of visiting their location when requesting a title loan. However, Auto Cash USA provides the added convenience of requesting title loans online meaning that you can start your title loan request online to connect with one of our lenders.
So, what is the title loans online meaning in terms of benefits?
- You save time. Instead of visiting an office to speak with a loan representative, you can start your inquiry online from the comfort of your own home.
- You get personalized service. Instead of researching the definition of title loans online from an unreliable source, you can speak directly to a licensed vendor in your area today. At that time, ask any questions you may have.
- You can apply anywhere, any time. You don’t have to wait for operating hours to contact the office. Just send an inquiry when it’s most convenient for you, to get a response from one of our lenders right away.
How To Apply For A Title Loan Now
Now that you know the title loans online meaning, you may be asking: “How can I get one right now?”
It’s simple. Just fill out the form, and we will send it to the nearest licensed vendor. A loan specialist will immediately get back to you, to personally explain the title loans online meaning and walk you through the process.
You can also ask any questions you have to fully understand the terms of the loan, thus allowing you to make an informed decision.
At the end of the call, you can set an appointment for the agent to meet you at your preferred location. This meeting will only take about 30 minutes and will include a vehicle inspection, verifying documents, and signing a few forms.
If the loan is approved, the final paperwork will be emailed to you for your e-signature, and the money is deposited into your bank the same day or the next business day.
Contact Us For A Title Loan
Fill out the form to find out the title loans online meaning and how you can request a title loan today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.