Most people prefer secured loans because of the advantage of a lower interest rate. Title loans are such loans. The collateral or security attached with such loans is most commonly backed by a vehicle. As a result, one temporarily surrenders the documents of the ownership of such title to own the vehicle.
By virtue of the advantages associated with it, title loans online have garnered a lot of popularity. One of the major reasons for rooting for title loans are people who do not hold a good credit score. So, as a result, where you can’t make up for the credit score, you make up with the title.
How does a car title loan work?
As stated earlier, a car title loan is backed by a collateral asset, usually a vehicle of the owner. Procedurally, the owner temporarily surrenders the title to such vehicle. Below are the pre-requisite one needs to ensure before applying for a title loan:
- The vehicle to be surrendered under title loan should be lien-free
- The owner must have a proof of ownership of such vehicle and the license to such vehicle
- You must be over 18 years of age and must have a residential proof
- You must have a valid bank account, email ID and phone number
Once the above conditions are met, you can apply for a title loan immediately. There are many loan broking sites that help in borrowers meeting lenders. To apply for a title loan online, you must head to iPayDayLoans. The platform is well suited for all kinds of secured and unsecured personal loans.
Title loan: Amount and Term?
The amount of the title loan is usually determined by the value of the borrower’s vehicle. There will be a defined time within which the repayment would need to be done in full by the borrower. In case of failure of payment, the borrower would need to hand over their vehicle to the lender.
Despite handing over the title to the lender, what makes title loans so special? Well, there are a number of reasons why people prefer title loans over other loans. Below are some of the following:
Low Credit Score
People with a low credit score sometimes find themselves bottlenecked in getting a loan online. In such a circumstance, title loans come as a handy solution. This is so because the lack of a good credit score might be there, but that is being filled with the title to the vehicle.
No Physical surrender of the vehicle
When you surrender the title to your vehicle, you just surrender the paperwork temporarily, till you repay the loan. The vehicle would still be with you, and you do not need to actually physically surrender the vehicle to the lender.
When you submit the paperwork and relevant registrations, you are just letting your vehicle act as a collateral. As and when you repay the loan in full, your title to the vehicle is retained and gained back. Hence, what is actually surrendered is just paperwork, and you still get to drive your vehicle.
Kind of Vehicles for Title loans
Whether you own a car, truck, motorcycle, you can obtain a title loan. The different and common types of title loans are car title loans (most common and popular), motorcycle title loans, SUV title loans and recreational vehicle title loans.
Process of Applying Title loan online
When you use platforms like iPayDayLoans, the application and processes are very simple to apply for title or any other loans. Before proceeding on to the steps, you must check that you have the pre-requisites in place for the application.
The pre-requisites must be a title of the car which establishes your ownership to the vehicle. The other requirement is that of a Government photo-ID that will ensure the validity of your individuality. The other requirement is to have a photo of the car.
Additional set of pre-requisites also suggests having proof of income. Herein, you are required to furnish either your bank statement, invoices, social security benefits, etc. You also then need to have a document establishing your place of residence.
After you have confirmed upon the same, you just need to follow the step-by-step guide to apply for a title loan:
You head to the homepage of iPayDayLoan. When there, you apply for a title loan. You apply for such a loan by filling out an application form. You will need to state a number of details about yourself, your vehicle, etc.
As a part and parcel of the application, you would also need to attach the proofs, the above stated documents in the format as accepted. Once you are sure that you have filled and uploaded all documents properly, you can then submit the application.
After you have submitted the application, a panel of experts will then review your application. By review, they go through the information submitted through your application. They will do an extensive search and will check the validity of the paperwork and proof attached by you.
Once they are satisfied that the information submitted by you is genuine and valid, they will approve your loan. While they look for financial viability and credit score, in title loans, the security of the vehicle covers up for the lack of credit score.
The loan disbursal is almost immediate when your application for title loan is approved by the experts. It typically takes less than one day to have the amount credited to your account.
If you face restrictions in loan application and are willing to make ideal use of your vehicle’s title, you can apply for a title loan online. A lot of people prefer title loans because of the promptness of the loan disbursal, thanks to iPayDayLoans.
Hence, you can make apt use of your vehicle and without worrying about your bad credit history, appl for a title loan.
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